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According to the asset approach to the exchange rate, there will be an overshooting of domestic currency when there is a once-and-for-all increase in foreign
According to the asset approach to the exchange rate, there will be an overshooting of domestic currency when there is a once-and-for-all increase in foreign money demand. However, this change in foreign money demand will have no effect on the domestic balance of payments in both short run and long run." True/False/Uncertain, explain with the support of ONE foreign exchange market diagram
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