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    International Economics Study Set 9
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    Exam 14: Exchange Rates I: the Monetary Approach in the Long Run
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    Absolute PPP Doesn't Do a Very Good Job Explaining Exchange
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Absolute PPP Doesn't Do a Very Good Job Explaining Exchange

Question 75

Question 75

Essay

Absolute PPP doesn't do a very good job explaining exchange rates in the short run. Give and fully explain two of the three reasons for this failure.

Correct Answer:

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Answered by ExamLex AI

One reason for the failure of Absolute P...

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