Given the current price level and output in Japan:

a.An increase in the U.S. money supply causes the dollar to appreciate against the yen, but it does not disturb Japanese money market equilibrium.

b.An increase in the U.S. money supply causes the dollar to appreciate against the yen, and it creates excess demand for the yen in Japanese money market.

c.An increase in the U.S. money supply causes the dollar to depreciate against the yen, and it creates excess demand for the yen in Japanese money market.

d.An increase in the U.S. money supply causes the dollar to depreciate against the yen, and disturbing Japanese money market equilibrium.

e.An increase in the U.S. money supply causes the dollar to depreciate against the yen, but it does not disturb Japanese money market equilibrium.