Advocates of flexible exchange rates claim that under flexible exchange rates, a currency
A.appreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic
B.depreciation caused by increasing the money supply would increase unemployment by lowering the relative price of domestic
C.depreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic
D.depreciation caused by increasing the money supply would reduce unemployment by increasing the relative price of domestic
E.None of the
Answer C
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