Consider the above figure that shows the simultaneous equilibrium in the money market and foreign exchange market. What will be the impact of a temporary increase in the EU money supply on the above figure and the dollar/euro exchange rate? Question 23 options: An increase in Europe's money supply lowers the dollar return on euro deposit. As a result, the expected dollar return of euro schedule shifts to the left, leading to a depreciation of the dollar. An increase in Europe's money supply lowers the dollar return on euro deposit. As a result, the vertical dollar return schedule shifts to the left, leading to a depreciation of the dollar. An increase in Europe's money supply lowers the dollar return on euro deposit. As a result, the expected dollar return of euro schedule shifts to the left, leading to a depreciation of the euro. An increase in Europe's money supply lowers the dollar return on euro deposit. As a result, the U.S. money supply increases, leading to a depreciation of the dollar