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QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. . a sharp change in foreign reserves sparked by a change in expectations about domestic production OC a sharp change in foreign reserves sparked by a change in expectations about the level of imports. OD. a sharp change in foreign reserves sparked by a change in expectations about the future exchange rate. QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? e all answers