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f there is a temporary increase to the money supply in the Eurozone, other things being equal, what is the result for Australia in the
f there is a temporary increase to the money supply in the Eurozone, other things being equal, what is the result for Australia in the short run? Question 3Answer a. Long-run expectations shift to expect a stronger euro. b. The Australian dollar appreciates against the euro. c. The Australian dollar nominal interest rate will increase, as the euro rate is unchanged. d. The money supply in Australia must decrease by the same proportion
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