A permanent change in monetary policy
A permanent change in
A permanent change
permanent change in monetary policy
A permanent change
in monetary policy
A permanent
A
A permanent change in monetary policy.

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A permanent change in monetary policy. More precisely, suppose that the domestic money supply increases permanently (a) Using the real exchange rate model explain the long-run consequences of this policy change. (b) Using the short-run model, and using the result from (a), explain the short-run consequences of this change policy change. (c) Explain the adjustment between short-run and long-run equilibrium and show this adjustment graphically.

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