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1. The purchasing power parity (PPP) hypothesis is based on the law of one price (LOOP). Solve the following questions: (1) First, show the condition

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1. The purchasing power parity (PPP) hypothesis is based on the law of one price (LOOP). Solve the following questions: (1) First, show the condition of LOOP. (2) Second, show the overall price level in domestic and foreign countries. (3) Third, derive the PPP condition

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