According to the short-run model of real monetary assets, interest rates, and exchange rates, suppose the EU keeps the status quo (REU, PEU and YEU are fixed) but the level of the US money supply rises permanently (YUS is fixed), which one of the following statements is correct? The dollar interest rate falls to a lower level and stays there permanently The dollar first depreciates against the Euro more than its long-run level but then appreciates gradually to its long-run level The dollar interest rate increases firstly and falls gradually back to its long-run level The dollar first depreciates against the Euro more than its long-run level and stays there permanently The dollar interest rate stays fixed due to a flexible price in the long run