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Relative PPP predicts that inflation differences between two countries will have an equal impact on their exchange rate. all else equal, the increase in the

Relative PPP predicts that

inflation differences between two countries will have an equal impact on their exchange rate.

all else equal, the increase in the inflation rate of one country will cause its interest rate to decrease

all else equal, the increase in the inflation rate of one country will cause its interest rate to increase

all else equal, the increase in the inflation rate of one country will cause its currency to appreciate

identical goods should sell for identical prices in different markets.

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