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Question
During inflation, an increase in the amount of currency available leads to:A.overheating of the economy thereby reducing the production levels in the economy.
B.changes in the relative demand-and-supply conditions in the foreign exchange market.
C.a reduction in the rate of inflation thus leading to an appreciation of the currency.
D.decreased lending by banks thereby resulting in more savings.
E.a decrease in the demand for goods and services, which drives currency value higher.
Answer
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