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Relative purchasing power parity applications a.Define relative purchasing power parity b.Show the relationship between relative purchasing power parity and the inflation rates in the two

Relative purchasing power parity applications

a.Define relative purchasing power parity

b.Show the relationship between relative purchasing power parity and the inflation rates in the two countries for which the spot exchange rate is also available.

c.What is the difference between absolute and relative purchasing power parity?

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