The Short Run Sequence of Events Following an Unanticipated Shift

Multiple Choice

The short run sequence of events following an unanticipated shift to a more expansionary monetary policy would be lower interest rates followed by dollar

A) depreciation, and an increase in the current account deficit.
B) depreciation, and a decrease in the current account deficit.
C) appreciation, and an increase in the current account deficit.
D) appreciation, and a decrease in the current account deficit.