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Define the theory of Purchasing Power Parity. Clearly explain the difference between the absolute and relative interpretations of the theory. After doing this, then assume
Define the theory of Purchasing Power Parity. Clearly explain the difference between the absolute and relative interpretations of the theory. After doing this, then assume the theory holds and separately describe the implications for foreign exchange rates under both interpretations. (MAX 400 WORDS) PLEASE HELP
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