WHEN THE EXCHANGE RATE HAS FALLEN IN THE SHORT RUN AND THEN RISES...

20. When the exchange rate has fallen in the short run and then rises to its original level in the long run, it implies that: A) the domestic money supply has temporarily risen. B) the domestic money supply has permanently risen. C) the domestic money supply has temporarily fallen. D) the domestic money supply has permanently fallen. [Essay Questions] Each question or sub-question here will give you points as noted.