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1. Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries

1. Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries with high inflation?

2. One assumption made in developing the IFE is that all investors in all countries have the same real interest rate. What does this mean?

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