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Elsie is new to international finance. They want to know about exchange rate (E) overshooting in relation to the money supply (M). You can tell
Elsie is new to international finance. They want to know about exchange rate (E) overshooting in relation to the money supply (M). You can tell them that overshooting is when: O A. The long-run response of M due to a permanent change in E is greater than the short-run response of M OB.The short-run response of M due to a permanent change in E is greater than the long-run response of M O C.The other responses are incorrect. O D.The short-run response of E due to a permanent change in M is greater than the long-run response of E O E. The long-run response of E due to a permanent change in M is greater than the short-run response of E
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