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hich of the following shocks can generate exchange rate overshooting (de- fined as E$/,initial < E$/,short-run < E$/,long-run): (a) permanent increase in money supply. (b)
hich of the following shocks can generate exchange rate overshooting (de- fined as E$/,initial < E$/,short-run < E$/,long-run): (a) permanent increase in money supply. (b) temporary increase in money supply. (c) permanent increase in foreign interest rate. (d) permanent increase in money supply temporary increase in foreign interest rate. (e) permanent increase in money supply temporary decline in foreign interest rate
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