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    International Economics Study Set 12
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    Exam 12: Exchange Rate Determination
  5. Question
    The Theory of Purchasing Power Parity States That Changes in the Nominal
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The Theory of Purchasing Power Parity States That Changes in the Nominal

Question 6

Question 6

Multiple Choice

The theory of purchasing power parity states that changes in the nominal exchange rate arise from differences in ______ among countries.


A) nominal interest rates
B) real interest rates
C) inflation rates
D) productivity rates

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