The government of country B follows an expansionary fiscal policy by increasing government spending. What will the immediate (short-run) impact of such a move be on the foreign exchange rate? (1 point)
A. The currency of country B depreciates against the currency of other countries, due to a decrease in interest rates as a result of large government spending.
B. The currency of country B appreciates against the currency of other countries, due to an increase in interest rates as a result of large government spending.
C. The currency of country B appreciates against the currency of other countries, due to a decrease in interest rates as a result of large government spending.
D. The currency of country B depreciates against the currency of other countries, due to an increase in interest rates as a result of large government spending.
E. The currency of country B remains at the same value as against the currency of other countries, regardless of an increase in interest rates as a result of large government spending.
