Which statement is TRUE?

A lower real exchange rate represents a political temptation to back increases in the growth rate of the money supply because the economy at least appears stronger when exports increase in the short run.

A decrease in the federal government's budget deficit causes interest rates to rise. This increases the demand for dollars$$which causes an appreciation of the dollar, which causes U$.$S$.$ exports to fall, which causes aggregate demand to fall.

A boost to domestic aggregate demand, resulting from new government spending, will to some extent be offset by the greater difficulty of exporting at the new and lower real exchange rate.

An increase in the growth rate of the money supply decreases the supply of dollars, thus causing a depreciation in the nominal exchange rate.