Keier tu rigure 32. CUIDIUer uldt ue U.3. ecUIUny IS niiany ai ure Iung-run puIL I and that there is a permanent increase in money supply. Then, the AA schedule (E- $/€) Figure 32. Exchange rae. OuY 1) shifts to the right and the exchange stays the same. 2) shifts to the right and the exchange rate increases. 3) shifts to the right and the dollar appreciates. 4) shifts to the right and the exchange rate falls.
Keier tu rigure 32. CUIDIUer uldt ue U.3. ecUIUny IS niiany ai ure Iung-run puIL I and that there is a permanent increase in money supply. Then, the AA schedule (E- $/€) Figure 32. Exchange rae. OuY 1) shifts to the right and the exchange stays the same. 2) shifts to the right and the exchange rate increases. 3) shifts to the right and the dollar appreciates. 4) shifts to the right and the exchange rate falls.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Keier Lu rigure se. CUISIuei uldt une u.s. eLUIUmy iS nirainy di e Iung-run pot A
and that there is a permanent increase in money supply. Then, the AA schedule
(E $/E)
Figure 32.
Exchange
rate. E
A
1) shifts to the right and the exchange stays the same.
2) shifts to the right and the exchange rate increases.
3) shifts to the right and the dollar appreciates.
4) shifts to the right and the exchange rate falls.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5086a70-5882-4160-9e42-dc1505ce6e4e%2F39a5cd3b-958d-4b78-9865-0d0a73d76533%2F5zd9ps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Keier Lu rigure se. CUISIuei uldt une u.s. eLUIUmy iS nirainy di e Iung-run pot A
and that there is a permanent increase in money supply. Then, the AA schedule
(E $/E)
Figure 32.
Exchange
rate. E
A
1) shifts to the right and the exchange stays the same.
2) shifts to the right and the exchange rate increases.
3) shifts to the right and the dollar appreciates.
4) shifts to the right and the exchange rate falls.
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