When the exchange rate depreciates in the short run and then appreciates to its original level in the long run, it implies that the foreign money supply has:
A) temporarily risen.
B) permanently risen.
C) temporarily fallen.
D) permanently fallen.

Question

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The Answer of When the exchange rate depreciates in the short run and then appreciates to its original level in the long run, it implies that the foreign money supply has:
A) temporarily risen.
B) permanently risen.
C) temporarily fallen.
D) permanently fallen.

When the Exchange Rate Depreciates in the Short Run and Then