7. Initially, Home economy was in the long-run equilibrium. Then, Home central bank permanently changed nominal money supply. Because of the change, Home interest rate would rise 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 N 0 shift. Foreign rate of return curve in short-run: Home rate of return curve in long-run