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    Exam 16: Price Levels and the Exchange Rate in the Long Run
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    Under Purchasing Power Parity
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Under Purchasing Power Parity

Question 55

Question 55

Multiple Choice

Under Purchasing Power Parity


A) E$/E = PiUS/PiE.
B) E$/E = PiE/PiUS.
C) E$/E = PUS/PE.
D) E$/E = PE/PES.
E) E$/E = PiE + PiUS/PiE.

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