An increase in a country's money supply causes Group of answer choices its currency to appreciate in the foreign exchange market while a reduction in the money supply causes its currency to depreciate. its currency to depreciate in the domestic market and appreciate in the foreign market. its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to further depreciate. no effect on the values of it currency in international markets. its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to appreciate.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan