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    Applied International Economics
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    Exam 14: Exchange Rates and Their Determination: A Basic Model
  5. Question
    Purchasing Power Parity Implies That Differences in Inflation Rates Across
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Purchasing Power Parity Implies That Differences in Inflation Rates Across

Question 67

Question 67

True/False

Purchasing Power Parity implies that differences in inflation rates across counties are caused by exchange-rate depreciation.

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