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Please help me understand how this makes a policy change: The Central Bank of Thailand has decided to increase the country's money supply temporarily during
Please help me understand how this makes a policy change: The Central Bank of Thailand has decided to increase the country's money supply temporarily during the current year. In the short-run when prices are sticky but the exchange rate is allowed to vary in a flexible way, this policy will:
a.raise the equilibrium aggregate real income in Thailand.
b.cause a depreciation of the nominal exchange rate in Thailand.
c.cause a decline in the interest rates in Thailand.
d.all of the above.
e.only a and c.
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