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  3. Study Set
    Applied International Economics
  4. Exam
    Exam 14: Exchange Rates and Their Determination: A Basic Model
  5. Question
    Purchasing Power Parity Is the Theory That States That Changes
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Purchasing Power Parity Is the Theory That States That Changes

Question 165

Question 165

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Purchasing power parity is the theory that states that changes in relative prices between countries are determined by changes in the exchange rate.

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