Which of the Following Statements Is MOST Accurate

Multiple Choice

Which of the following statements is MOST accurate?

A) In the money market, an increase in U.S. money supply level leads to a proportional increase in the long-run nominal dollar/euro exchange rate.
B) In the money market, an increase in European money supply level leads to a proportional increase in the long-run nominal dollar/euro exchange rate.
C) In the money market, an increase in U.S. money supply growth rate leads to a decrease in the long-run nominal dollar/euro exchange rate.
D) In the money market, an increase in European money supply growth leads to an increase in the long-run nominal dollar/euro exchange rate.
E) In the money market, an increase in U.S. money supply level leads to a proportional decrease in the long-run nominal dollar/euro exchange rate.