In an open economy with a floating exchange rate, pursuing an expansionary fiscal policy is: a) ineffective because it raises interest rates, appreciates the domestic currency and reduces exports b) ineffective because it causes interest rates to fall, the domestic currency to depreciate and exports to fall c) effective because it raises interest rates, appreciates the domestic currency and increases exports d) effective because it raises interest rates, devalues the domestic currency and reduces exports e) None of the above