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Between two nations,which of the following statement(s)is(are)true about the theory of relative purchasing power parity? i.inflation rates are unrelated ii.exchange rate differential reflects the inflation
Between two nations,which of the following statement(s)is(are)true about the theory of relative purchasing power parity? i.inflation rates are unrelated ii.exchange rate differential reflects the inflation rate differential iii.the inflation rate is larger in weaker currencies iv.the interest rate is greater than the inflation rate during depreciations Choose the two option that contains all the correct statements.
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