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"Following a Shock to the Equilibrium,prices Will Adjust Slowly to the New

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"Following a shock to the equilibrium,prices will adjust slowly to the new equilibrium level,whereas exchange rates and interest rates adjust quickly.This causes the spot exchange rate to move too much before returning to the equilibrium level." This idea is called _______.


Definitions:

Fake News

False or misleading information presented as news, often spread on the internet or through other media to deceive and manipulate public opinion.

Third-person Effect

A social psychological phenomenon where individuals tend to believe that others are more influenced by mass media messages or persuasive communications than they are themselves.

Fear-based Messages

Communications aimed at eliciting fear in order to influence behavior or attitudes towards a particular action or outcome.

Autokinetic Effect

A visual phenomenon where a stationary point of light in a dark room appears to move because of small, involuntary eye movements.

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