2. Consider the effect of the permanent money supply change on the price and the expected exchange rate. Initially, P = 20001-1 and Ee = 40CHICF. Then, Home central bank changed the nominal money supply from 400001-1 to 4400011. Answer the value of P in the short-run and the value of Ee in the long-run. P in the short-run! Ee in the long-run! 3. Initially, Home economy was in the long-run equilibrium. Then, Home central bank permanently changed nominal money supply. Because of the change, the real money supply increased in the long-run. Answer how Foreign rate of return curve would shift in the short-run and how Home rate of return curve would shift in the long-run: Leftward, Rightward, or No shift. Foreign rate of return curve in short-run! Home rate of return curve in long-run