Silvano Jimenez, an analyst at Banco del Rey, is reviewing recent actions taken by the U. S. Federal Reserve (the Fed) in setting monetary policy. Recently, the Fed decided to increase the money supply, which has resulted in a decrease in real interest rates. At a staff meeting, Jimenez brings this matter to the attention of his colleagues and makes the following statements: Statement 1: Although the money supply increase has led to a decrease in real interest rates, we should begin to see U.S. investors decrease their investments abroad and the U.S. dollar will appreciate in the foreign exchange market. Statement 2: The Fed’s increase in the money supply will increase the amount of imports into the U. S. Are Statement 1 and Statement 2 as made by Jimenez correctStatement 1Statement 2（）①A. Incorrect Correct ②B. Correct Incorrect ③C. Incorrect Incorrect
A. ①
B. ②
C. ③
