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Macroeconomics

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Appreciation or Depreciation

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Which of the following combinations should lead to an appreciation of country A's currency?

A

A decrease in country A's budget deficit and increase in its money supply.

B

An increase in government spending and a decrease in its money supply.

C

An increase in its budget deficit and an increase in its money supply.

D

The central bank of country A buys government bonds and taxes are raised.