Under the Flexible Exchange Rate System,when a Country Tries to Stimulate

Multiple Choice

Under the flexible exchange rate system,when a country tries to stimulate economic growth and improve its employment rates,it is likely to cause:

A) the domestic inflation rate to rise and the domestic currency to depreciate.
B) the domestic inflation rate to rise and the domestic currency to appreciate.
C) the domestic inflation rate and the value of the domestic currency to remain constant.
D) the domestic inflation rate to fall and the domestic currency to appreciate.
E) the domestic inflation rate to fall and the domestic currency to depreciate.