Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) An expansionary monetary policy tends to raise interest rates.
B) An expansionary monetary policy tends to lead to an appreciation of the currency.
C) An expansionary monetary policy tends to lead to a current account deficit.
D) A contractionary monetary policy tends to lead to a depreciation of the currency.
E) An expansionary monetary policy tends to lead to an increase in aggregate demand.