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what is the answer User 7. (3 points) Which of the following shocks can generate exchange rate overshooting (defined as E$/,initial < E$/,short-run < E$/,long-run):

what is the answer User 7. (3 points) Which of the following shocks can generate exchange rate overshooting (defined 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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