In the Dornbusch "overshooting" model, asset markets adjust rapidly to disturbances than do goods markets, and therefore the exchange rate and the price level proportionately to each other in the short run. a. more/move b. more/do not move c. less/move d. less/do not move
In the Dornbusch "overshooting" model, asset markets adjust rapidly to disturbances than do goods markets, and therefore the exchange rate and the price level proportionately to each other in the short run. a. more/move b. more/do not move c. less/move d. less/do not move
Chapter9: Forecasting Exchange Rates
Section: Chapter Questions
Problem 12QA
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PQ 6
In the Dornbusch "overshooting" model, asset markets adjust rapidly to disturbances than do goods markets, and therefore the exchange rate and the price level proportionately to each other in the short run.
a. more/move
b. more/do not move
c. less/move
d. less/do not move
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