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After a permanent increase in the money supply Question 40 options: the exchange rate first appreciates in the short run, then overshoots in the long
After a permanent increase in the money supply Question 40 options: the exchange rate first appreciates in the short run, then overshoots in the long run the exchange rate overshoots in the long run. the exchange rate remains the same, but the price changes the exchange rate overshoots in the short run. the exchange rate smoothly depreciates in the short run and then remain unchanged
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