1-) Which one of the following statements is the most accurate?
D) A permanent increase in a country's money supply causes a proportional short-run depreciation of its currency against foreign currencies. 

E)A permanent increase in a country's money supply causes a proportional short-run appreciation of its currency against foreign currencies. 

B)A temporary increase in a country's money supply causes a proportional long-run depreciation of its currency against foreign currencies. 

C) A permanent increase in a country's money supply causes a proportional long-run appreciation of its currency against foreign currencies. 

A)A permanent increase in a country's money supply causes a proportional long-run depreciation of its currency against foreign currencies.

2-)Which one of the following statements is the most accurate?
C) Given PUS and YUS, when the money supply decreases, the dollar interest rate declines and the dollar depreciates against the euro. 

B) Given YUS, when the money supply rises, the dollar interest rate declines and the dollar depreciates against the euro. 

A) Given PUS. when the money supply rises, the dollar interest rate declines and the dollar depreciates against the euro. 

D) Given PUS and YUS, when the money supply rises, the dollar interest rate declines and the dollar appreciates against the euro. 

E) Given PUS and YUS, when the money supply rises, the dollar interest rate declines and the dollar depreciates against the euro.