6. The dynamic system of the model of overshooting of exchange rate adjustment is i jump instantaneously) and x2 = p is domestic price level (sticky and cannot jump): Ax, where x1 = s is nominal exchange rate (can 0 2 -3 (a) State the characteristic equation and find the eigenvalues of A. (b) For the negative eigenvalue, find the corresponding eigenvector. (c) Given that p(0) = 1, find the rational expectations equilibrium time path (saddle path) of (s(t), p(t))'.

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