PPP is the macroeconomic counterpart to LOOP. Suppose the assumptions needed for LOOP hold. Are there situations

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PPP is the macroeconomic counterpart to LOOP. Suppose the assumptions needed for LOOP hold. Are there situations in which PPP may not hold when LOOP does? Explain briefly.

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Question Posted: Jan 05, 2023 01:23 AM

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PPP is the macroeconomic counterpart to LOOP. Suppose the assumptions needed for LOOP hold. Are there situations

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Yes there are situations in which LOOP holds but PPP does not Recall that PPP uses ...View the full answer

International Economics

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