A.A permanent increase in a country’s money supply causes a proportional long- run depreciation of its currency against foreign
B.A temporary increase in a country’s money supply causes a proportional long- run depreciation of its currency against foreign
C.A permanent increase in a country’s money supply causes a proportional long- run appreciation of its currency against foreign
D.A permanent increase in a country’s money supply causes a proportional short-run depreciation of its currency against foreign
E.A permanent increase in a country’s money supply causes a proportional short-run appreciation of its currency against foreign
Answer: A
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