If the Fed Increases the Money Supply to Fight Recession

Multiple Choice

If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed in fighting recession because

A) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will rise and the price of U.S. imports will fall.
B) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will fall and the price of U.S. imports will rise.
C) as the money supply is increased, the interest rate will decrease, and the price of both U.S. exports and U.S. imports will fall.
D) as the money supply is increased, the interest rate will decrease, and the price of U.S. exports and U.S. imports will rise.