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  3. Study Set
    Macroeconomics Study Set 68
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    Exam 21: The Balance of Payments, Exchange Rates, and Trade Deficits
  5. Question
    The Purchasing-Power-Parity Theory Holds That Exchange Rates Should Equalize the Inflation
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The Purchasing-Power-Parity Theory Holds That Exchange Rates Should Equalize the Inflation

Question 225

Question 225

True/False

The purchasing-power-parity theory holds that exchange rates should equalize the inflation rates
among the trading nations.

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