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If an economy is currently operating above its trend rate, and has a current account surplus, an increase in the money supply is likely to

If an economy is currently operating above its trend rate, and has a current account surplus, an increase in the money supply is likely to lead to:*

A rise in the inflation rate and reduction in the current account surplus

Rising unemployment and a reduction in the current account surplus

Falling unemployment and no effect on the current account

A rise in the inflation rate and an increase in the balance of payment surplus

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