Explain and demonstrate graphically how an unsterilized purchase of foreign assets leads to overshooting of the exchange rate,and describe the long-run behavior of the exchange rate,everything else held constant.

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The Answer of Explain and demonstrate graphically how an unsterilized purchase of foreign assets leads to overshooting of the exchange rate,and describe the long-run behavior of the exchange rate,everything else held constant.

Explain and Demonstrate Graphically How an Unsterilized Purchase of Foreign