Problem
1. Memory test: What are hysteresis effects? Where are they mentioned in this chapter? What point is made in relation to them?
2. Is the assumption in the Dornbusch model of sticky goods market prices realistic? What about the other assumptions of the model?
3. What is the relationship between purchasing power parity and the neutrality of money?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.