When a Country's Central Bank Increases the Money Supply,a Unit

question 257

Multiple Choice

When a country's central bank increases the money supply,a unit of money

• A) gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.
• B) gains value in terms of the domestic goods and services it can buy,but loses value in terms of the foreign currency it can buy.
• C) loses value in terms of the domestic goods and services it can buy,but gains value in terms of the foreign currency it can buy.
• D) loses value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.

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