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adriii0825 adriii0825
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A year ago

The purchasing power parity theory predicts that changes in the relative price levels of two countries will affect the exchange rate in such a way that



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one unit of a nation's currency will buy more foreign goods than it did before the change in the relative price levels.



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one unit of a nation's currency will buy fewer foreign goods than it did before the change in the relative price levels.



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one unit of a nation's currency will continue to buy the same amount of foreign goods as it did before the change in the relative price levels.



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the percentage of depreciation in one currency equals the percentage of appreciation in the other currency.

Textbook 
Economics

Economics


Edition: 12th
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kimtrankimtran
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A year ago
Brilliant ツ
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This site is awesome
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Smart ... Thanks!
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