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Home Q & A Board Other Fields Homework Help Business Economics
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bedau bedau
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6 years ago
The purchasing power parity theory (PPP) of the exchange rate implies that the real exchange rate between two countries
A) should be constant.
B) should rise when the foreign price level increases relative to the domestic price level.
C) should fall when the foreign price level decreases relative to the domestic price level.
D) B and C.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
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supersuinegsupersuineg
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bedau Author
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#2
5 years ago
magnificent Slight Smile
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