If Purchasing-Power Parity Holds,when a Country's Central Bank Increases the Money

question 58

Multiple Choice

If purchasing-power parity holds,when a country's central bank increases the money supply,its

• A)price level rises and its currency appreciates relative to other currencies in the world.
• B)price level rises and its currency depreciates relative to other currencies in the world.
• C)price level falls and its currency appreciates relative to other currencies in the world.
• D)price level falls and its currency depreciates relative to other currencies in the world.