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Suppose the theory of purchasing power parity (PPP) is true. If inflation is higher in Eurozone than in Australia, which of the following is TRUE?
Suppose the theory of purchasing power parity (PPP) is true. If inflation is higher in Eurozone than in Australia, which of the following is TRUE? a. The nominal exchange rate, expressed in euros per Australian dollar, increases b. The nominal exchange rate, expressed in euros per Australian dollar, decreases c. The nominal exchange rate, expressed in euros per Australian dollar, does not change d. None of the other options
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
