(A) Could There Be "Overshooting" of the Exchange Rate in the Dornbusch

question 21

Essay

(a) Could there be "overshooting" of the exchange rate in the Dornbusch model if goods markets adjusted as rapidly as asset markets? Why or why not?
(b) What would be the analog to the general phenomenon of "overshooting" in a situation of fixed exchange rates?

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The cumulative deposit of knowledge, beliefs, norms, values, and artifacts that characterize human societies and guide both collective and individual behaviors.

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