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According to the monetary approach to exchange rates (lecture 4), what happens when the ECB decides to raise the growth rate of the euro money
According to the monetary approach to exchange rates (lecture 4), what happens when the ECB decides to raise the growth rate of the euro money supply permanently? The euro interest rate jumps up to a higher level immediately and then stays constant at the new level O The real return of euro assets increases permanently O The eurozone price level jumps up to a higher level immediately and then stays constant at the new level O The euro/dollar exchange rate jumps up to a higher level immediately and then stays constant at the new level
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