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2. Suppose people expect that the money supply in Europe will increase permanently in the next year a) What is its effect on the exchange

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2. Suppose people expect that the money supply in Europe will increase permanently in the next year a) What is its effect on the exchange rate of U.S. dollar per unit of Euro in the next year? b) Find its effect of the on the exchange rate of U.S. dollar per unit of Euro today

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