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The exchange rate movements during the 1980s and 1990s proved contrary to the purchasing power parity theory because Question 43 options: they were influenced by
The exchange rate movements during the 1980s and 1990s proved contrary to the purchasing power parity theory because Question 43 options: they were influenced by supply and demand. they did not seem to be strongly influenced by inflation rates. they caused a recession. they helped countries to maintain strategic flexibility by dispersing production to different locations. they forced a reduction in government spending
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