Unanticipated Expansionary Monetary Policy Will Increase Economic Growth and Push

Multiple Choice

Unanticipated expansionary monetary policy will increase economic growth and push inflation upward while lowering real interest rates. This will cause

A) an increase in the demand for foreign currencies and a decline in the foreign exchange value of the dollar.
B) a decrease in the demand for foreign currencies and a decline in the foreign exchange value of the dollar.
C) an increase in the demand for foreign currencies and an increase in the foreign exchange value of the dollar.
D) a decrease in the demand for foreign currencies and an increase in the foreign exchange value of the dollar.