Which of the Following Is an Immediate Effect of an Increase

question 40

Multiple Choice

Which of the following is an immediate effect of an increase in money supply by the European Central Bank by 10 percent?

• A)There will be an inflow of foreign capital in the countries belonging to the European Union.
• B)The expected exchange rate value of the foreign currencies vis-à-vis the Euro will increase.
• C)The interest rate in the EU countries will increase.
• D)The product prices in the EU countries will decline drastically.

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