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    Exam 12: Open-Economy Macroeconomics: Basic Concepts
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    According to the Theory of Purchasing-Power Parity, the Real Exchange
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According to the Theory of Purchasing-Power Parity, the Real Exchange

Question 19

Question 19

True/False

According to the theory of purchasing-power parity, the real exchange rate defined as foreign goods per unit of Canadian goods will equal the domestic price level divided by the foreign price level.

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