An increase in a country's money supply causes
A) its currency to appreciate in the foreign exchange market while a reduction in the money supply causes its currency to depreciate.
B) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to appreciate.
C) no effect on the values of it currency in international markets.
D) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to further depreciate.
E) its currency to depreciate in the domestic market and appreciate in the foreign market.
B
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Which of the following will cause aggregate private spending to increase?
A) an increase in government spending B) a reduction in expected future interest rates C) a reduction in expected future taxes D) all of the above E) none of the above
Fiscal policy is determined by
a. the president and Congress and involves changing government spending and taxation. b. the president and Congress and involves changing the money supply. c. the Federal Reserve and involves changing government spending and taxation. d. the Federal Reserve and involves changing the money supply.