Suppose the figure to the right depicts an economy where the expected future exchange rate, E, is fixed An open-market expansion of the money supply in this zero-interest economy would DD O A. cause the horizontal stretch of AA to be shorter. O B. increase equilibrium output. O C. eventually lead to progressive currency depreciation along the downward - sloping segment of AA. Exchange rate, E Ee OD. shift AA to the right. 1-R Output, Y