With Flexible Exchange Rates,perfect Asset Substitutability,and Perfect Capital Mobility,expansionary Monetary

Multiple Choice

With flexible exchange rates,perfect asset substitutability,and perfect capital mobility,expansionary monetary policy will cause

A) income to rise, interest rates to fall, and the domestic currency to depreciate.
B) income to fall, interest rates to rise, and the domestic currency to appreciate.
C) income to rise, interest rates to remain unchanged, and the domestic currency to appreciate.
D) income to rise, interest rates to remain unchanged, and the domestic currency to depreciate.