In a floating exchange rate regime, which of the following is correct for "overshooting"

		As a response to the permanent increase in the home money supply, depreciation of the domestic currency in the short run is less than the depreciation of the domestic currency in the long run.
		As a response to the permanent increase in the home money supply, depreciation of the domestic currency in the short run is equal tothe depreciation of the domestic currency in the long run.
		As a response to the permanent increase in the home money supply, depreciation of the domestic currency in the short run is higher than the depreciation of the domestic currency in the long run.
		None