The Overshooting Theory by Dornbusch Is Based on the Assumption

question 23

Multiple Choice

The overshooting theory by Dornbusch is based on the assumption that:

• A) covered interest parity does not hold in the short run.
• B) uncovered interest parity does not hold in the short run.
• C) fisher equation does not hold in the short run.
• D) purchasing power parity does not hold in the short run.

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