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According to monetary approach to exchange rate, if purchasing power parity (PPP) holds, how is exchange rate determined between Canadian dollar (D) and Euro (O)E(D/O)?

According to monetary approach to exchange rate, if purchasing power parity (PPP) holds, how is exchange rate determined between Canadian dollar (D) and Euro (O)E(D/O)? Why is this theory called a monetary approach and how realistic is it? How is this theory related to real exchange rate between these two currencies -q(D/O)?

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