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    Global Economic Issues
  4. Exam
    Exam 8: The Power of Arbitrage: Purchasing Power and Interest Rate Parities
  5. Question
    If the Difference Between the Domestic Inflation Rate and the Foreign
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If the Difference Between the Domestic Inflation Rate and the Foreign

Question 1

Question 1

True/False

If the difference between the domestic inflation rate and the foreign inflation rate exceeds the percentage depreciation in the domestic currency, then relative purchasing power parity holds true.

Correct Answer:

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