If the government follows an easy monetary policy and the exchange rate is flexible, which of the

Question:

If the government follows an easy monetary policy and the is flexible, which of the following will likely be the result?
a. A falling real interest rate but higher net exports.
b. A higher real interest rate but lower net exports.
c. A strong currency that helps stimulate exports.
d. Increases in the demand for the currency and decreases in the supply of the currency.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...