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The purchasing power parity theory states that

harry32

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The purchasing power parity theory states that

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exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries.

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exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries.

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the larger the economic growth rate in a country, the less likely its currency will depreciate in value.

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exchange rates cannot be compared over time.

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currencies appreciate as often as they depreciate.

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Economics

Edition: 12^th

Author: Arnold

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ksweet

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You make an excellent tutor!

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this is exactly what I needed

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