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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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