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Econia Increases Its Money Supply

Question 78

Multiple Choice

Econia increases its money supply. What is likely to happen to the value of Econia's currency in foreign exchange markets and to the level of Econia's net exports?


A) Currency appreciates, and net exports increase.
B) Currency appreciates, and net exports decrease.
C) Currency depreciates, and net exports increase.
D) Currency depreciates, and net exports decrease.

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