Assume also that goods prices are sticky in the short run. Suppose the US central bank implements a contractionary monetary policy in a permanent fashion, and market participants correctly anticipate this policy two months in advance. Use the MM-FX model to explain changes in the dollareuro exchange rate in the short run and the long run. Is there exchange rate overshooting?

Domestic and foreign rates of return converge, as depreciation of the euro raises returns for U.S. investors who purchase euro-based assets.

Explanation:

When there is an  increase in the quantity of money, it is made  to be permanent and prices are adhesive, then in the short term the rate of exchange diminishes  because the fall of the domestic nominal returns is relative to foreign returns, and traders expect a fall in future for exchange rates.

absolute poverty the condition of having too little income to buy the necessities-- food, shelter, clothing, health care.

achieved status a social position (status) obtained through an individual's own talents and efforts.

affirmative action the requirement that employers make special efforts to recruits hire and promote qualified members of previously excluded groups including women and minorities.

aggregate a collection of unrelated people who do not know one another but who may occupy a common space--for example, a crowd of people crossing a city street.

agrarian societies societies in which large scale cultivation using plows and draft animals is the primary means of subsistence.

alienation the separation or estrangement of individuals from themselves and from others.

amalgamation the biological as well as cultural assimilation (merging) of racial or ethnic groups.

anomalies in science observations or problems that cannot be explained or solved in terms of a prevailing paradigm.

anomie a breakdown or confusion in the norms, values, and culture of a group or a society. a condition of relative normlessness.

anomie theory the theory suggesting that deviance and crime occur when there is an acute gap between cultural norms and goals and the socially structured opportunities for individuals to achieve those goals.

anticipatory socialization the process of taking on the attitudes values and behaviors of a status or role one expects to occupy in the future.

apartheid the recent policy of racial separation in south africa enforced by leg

explanation:

answer; ///i believe the correct answer is (b) the writing of the ancients who lived in india after the indus valley inhabitants died out;