The exchange rate between the US dollar and the Euro is $1 = .9Euro. If Italian shoes
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The exchange rate between the US dollar and the Euro is $1 = .9Euro. If Italian shoes costs $100 in the U.S. and 92 Euros inItaly, does purchasing power parity hold in this case? If theexchange rate instead were $1 = .89 Euro, is the rate closer tothat where parity holds or further away?
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Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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