(06.04 HC) Assume the central bank of country X pursues an expansionary monetary policy, such as buying bonds. What will be the impact in the foreign exchange market? The currency of country X will appreciate against the currency of its trading partners as residents of country X try to import more goods. The currency of country X will appreciate as foreigners try to buy more financial assets from country X. O The currency of country X will depreciate as foreigners buy fewer goods from country X. The currency of country X will depreciate as interest rates in country X fall, and its financial assets will be less attractive. The currency of country X will depreciate, as its net exports will increase