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    International Economics Study Set 9
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    Exam 15: Exchange Rates II: the Asset Approach in the Short Run
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    Overshooting Occurs Because
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Overshooting Occurs Because

Question 70

Question 70

Multiple Choice

Overshooting occurs because:


A) expectations adjust slower than prices.
B) expectations adjust at the same rate as prices.
C) expectations adjust faster than prices.
D) expectations do not adjust.

Correct Answer:

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