Question

C. Think about the long-run effects of a permanent increase in the U.S. money supply. How...

C. Think about the long-run effects of a permanent increase in the U.S. money supply. How will the below variables change in the long run compared to the initial equilibrium? Pick one option for each variable. (H stands for Home Country, aka the U.S.

MH

Increase

Decrease

No change

Cannot tell

iH

Increase

Decrease

No change

Cannot tell

PH

Increase

Decrease

No change

Cannot tell

T

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