1. Consider the effect of the permanent money supply change on the price and the expected exchange rate. Initially, P = 20CH and Ee =
1. Consider the effect of the permanent money supply change on the price and the expected exchange rate. Initially, P = 20CH and Ee = 50CH/CF. Then, Home central bank changed the nominal money supply from 500CH to 450CH. 1.a. Answer the values of P and Ee in the short-run. P: Ee: 1.b. Answer the values of P and Ee in the long-run. P: Fe
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