If purchasing-power parity holds, when a country’s central bank increases the money supply, its select one: a. price level rises and its currency appreciates relative to other currencies in the world.

If purchasing-power parity holds, when a country’s central bank increases the money supply, its select one: a. price level rises and its currency appreciates relative to other currencies in the world. b. price level rises and its currency depreciates relative to other currencies in the world. c. price level falls and its currency appreciates relative to other currencies in the world. d. price level falls and its currency depreciates relative to other currencies in the world. previous page