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and Suppose a countrys central bank announces that it is increasing the money growth rate. The countrys currency will sudde

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Ans- Option 3. Depreciate, Rise

When Central bank increase the money supply, the flow of money increases in economy which increases the rtae of Inflation. Increase in Inflation rate will increase the price of products which would make them less competitive to sell in Global market resulting in fall of Exports.

Decrease in Exports will decrease the demand of domestic currency with which the Country Currency will suddenly Depreciate and its rate of depreciation will rise.

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