Please state which of the options is the correct answer and explain why this is. Additionally, please fully also explain why the other answers are incorrect. (If the reasoning for the correct answer and incorrect answers are not adequately provided, your answer will be sent back to coursehero). Thank you.

Assume that policy makers in the home country are pursuing a xed exchange rate regime and that output is initially greater than the natural level of output. The economy will tend to move toward the natural level of output when which of the following occurs? a. A devaluation of the currency; b. An increase in the foreign price level; c. A reduction in the domestic interest rate; d. An increase in the home country price level; e. None of the other options