Question $7$

$1$ pts

Among the statements below pick the one that can be best used to describe the long$-$run effects on the exchange rate given provisions of the monetary approach. Select one $-$ the most appropriate answer.

No correct answer.

All answers are correct.

Interest rate cut leads to currency appreciation.

Output plunge causes currency depreciation.

A drop in money supply brings about currency appreciation.

Currency appreciates with the increase in money demand.