When a Country's Central Bank Increases the Money Supply, Which

Multiple Choice

When a country's central bank increases the money supply, which of the following best predicts the consequences?

A) Its price level rises, and its currency appreciates relative to other currencies in the world.
B) Its price level rises, and its currency depreciates relative to other currencies in the world.
C) Its price level falls, and its currency appreciates relative to other currencies in the world.
D) Its price level falls, and its currency depreciates relative to other currencies in the world.