If We Start from Long-Run General Equilibrium of Goods, Forex

Multiple Choice

If we start from long-run general equilibrium of goods, forex, and the money markets, and there is a temporary expansion of the money supply, what will be the outcome?

A) GDP rises, the interest rate falls, and the exchange rate rises (depreciation) .
B) GDP rises, the interest rate rises, and the exchange rate falls (appreciation) .
C) GDP falls, the interest rate falls, and the exchange rate rises (depreciation) .
D) GDP falls, the interest rate rises, and the exchange rate rises (depreciation) .