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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
  5. Question
    Nominal Anchors Limit Overshooting By
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Nominal Anchors Limit Overshooting By

Question 42

Question 42

Multiple Choice

Nominal anchors limit overshooting by:


A) fixing exchange rates.
B) distinguishing between permanent and temporary changes.
C) slowing down expectations formation.
D) limiting temporary changes to exchange rates.

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