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The scenario where implementing expansionary monetary policy in response to a recession is a response to short-run fluctuations. Does that result match up with the
The scenario where implementing expansionary monetary policy in response to a recession is a response to short-run fluctuations.
- Does that result match up with the long-run response of e(exchange rates)?
- Illustrate and describe the ultimate long-run response of the exchange rate to such a policy.
- Is there a disconnect between the classical long-run concept of the Quantity Theory of Money and the ultimate change? Why or why not?
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