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1. Explain how the exchange rate ($/FX) would be affected by a permanent reduction in the expected depreciation of the dollar versus the euro? 2.

1. Explain how the exchange rate ($/FX) would be affected by a permanent reduction in the expected depreciation of the dollar versus the euro?

2. In our depiction of what happens to inflation, money demand, interest rates and the exchange rate after a sudden acceleration of the money supply, what happens at time = t0 and why?

Plz 1 and 2 asap

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