Consider the above figure that shows simultaneous equilibrium in the money market and foreign exchange market. What will be the impact of a temporary increase in the U.S. money supply on the above figure and the dollar/euro exchange rate? Question 31 options: An increase in the US money supply lowers the dollar interest rate. As a result, the vertical dollar return schedule shifts to the left in the top part of figure, leading to an appreciation of the dollar. An increase in the US money supply lowers the dollar interest rate. As a result, the vertical dollar return schedule in the top top part of the figure shifts to the left, leading to a depreciation of the dollar. An increase in the US money supply lowers the dollar interest rate. As a result, the vertical dollar return schedule in the bottom part shifts to the left, leading to an appreciation of the dollar. An increase in the US money supply lowers the dollar interest rate. As a result, the expected dollar return of euro schedule shifts to the left, leading to a depreciation of the dollar