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The PPP Theory Tells Us That a Country with a High

Question 94

Multiple Choice

The PPP theory tells us that a country with a high inflation rate will see:


A) a depreciation in its currency exchange rate
B) an appreciation in its currency exchange rate
C) no change in its currency exchange rate as a result of the inflation rate
D) economic stability as a result of high inflation
E) price rises to match neighbouring country prices

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