In a small open economy, a monetary injection causes money supply to__ and interest rate to__.

A. decrease, decrease

B. increase, decrease

C. increase, increase

D. decrease, increase

In a small open economy with a flexible exchange rate, a monetary injection will cause the Canadian to__ because the supply of Canadian dollars in the foreign currency exchange market___.

A. depreciate, increases

B. appreciate, increases

C. depreciate, decreases

D. appreciate, decreases