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Initially, P = 300cH and E9 = SUCH/CF. Then, Home central bank changed the nominal money supply from 50000}! to 4000ca. Answer the value of
Initially, P = 300cH and E9 = SUCH/CF. Then, Home central bank changed the nominal money supply from 50000}! to 4000ca. Answer the value of E6 in the short-run and the value of P in the long-run. E.3 in the short-run: P in the long-run! Permanent Money Supply Changes and the Exchange Rate AMS AE In short-run, = MS E AMS AP In long-run, = MS P
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