Question
Purchasing power parity (PPP). They are absolute PPP and relative PPP. If a domestic government entity released economic information that suggested that the purchasing power
Purchasing power parity (PPP).
They are absolute PPP and relative PPP. If a domestic government entity released economic information that suggested that the purchasing power of money in the future will be less than previously expected, what would happen to the current exchange rate today? Will both absolute PPP and relative PPP hold, or will only one of them hold? Reflect on the personal financial and banking experience that you have had over your lifetime, and implement that into your response. Support your answer, and structure your thorough response as if you were presenting to a world economic organization like the World Bank.
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