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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 Is a Theory That States That Changes
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Purchasing Power Parity Is a Theory That States That Changes

Question 36

Question 36

True/False

Purchasing power parity is a theory that states that changes in exchange rates between countries are related to changes in relative prices.

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