Which one of the following statements is the most accurate?
1) A permanent increase in a country's money supply causes a proportional long-run depreciation of its currency against foreign currencies.
2) A permanent increase in a country's money supply causes a proportional long-run appreciation of its currency against foreign currencies.
3) A permanent increase in a country's money supply has no impact on the long-run value of its currency against foreign currencies.
4) A permanent increase in a country's money supply causes a proportional short-run depreciation of its currency against foreign currencies.