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If the U.S. experiences a 5% inflation rate while France is experiencing a 3% inflation rate, then according to purchasing power parity A. The U.S.
If the U.S. experiences a 5% inflation rate while France is experiencing a 3% inflation rate, then according to purchasing power parity A. The U.S. dollar should decline against the French franc by 2%. B. The value of the U.S. dollar should increase by approximately 2% against the French franc. C. The French franc would decline by 2% against the U.S. dollar. D. There would be no change in either currency
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