An Expansionary Monetary Policy

Multiple Choice

An expansionary monetary policy:

A) puts upward pressure on interest rates causing the currency to appreciate.
B) puts upward pressure on interest rates causing the currency to depreciate.
C) puts downward pressure on interest rates causing the currency to appreciate.
D) puts no pressure on interest rates and does not change the exchange rate.
E) puts downward pressure on interest rates causing the currency to depreciate.