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Suppose that the Fed decreases the money supply permanently. Illustrate and explain the effect on the dollar/euro exchange rate in the short run when there

Suppose that the Fed decreases the money supply permanently. Illustrate and explain the effect on the dollar/euro exchange rate in the short run when there is price rigidity and in the long run when prices are flexible. Does the exchange rate overshoot its long-run value in the short run?

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