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The idea that exchange rates should move to equalize the prices of a basket of goods and services across different countries is known as: a.

The idea that exchange rates should move to equalize the prices of a basket of goods and services across different countries is known as:

a. Interest Rate Parity (IRP)

b. Real Effective Exchange Rate

c. Purchase Power Parity (PPP)

d. The Law of No Arbitrage

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