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The inflation rates in Australia and Europe in last year are equal. Suppose the real exchange rate RSIAUD/EUR) has increased from 1.45 to 1.54. Which
The inflation rates in Australia and Europe in last year are equal. Suppose the real exchange rate RSIAUD/EUR) has increased from 1.45 to 1.54. Which of the following statements is LEAST likely to be correct? The change of the internal purchasing power of the Euro is different from the change of its external purchasing power. The Euro has a real appreciation against the Australian dollar. Absolute purchasing power parity has been violated. O Relative purchasing power parity has been violated. O The nominal exchange rate S(AUD/EUR) should remain unchanged. The inflation rates in Australia and Europe in last year are equal. Suppose the real exchange rate RSIAUD/EUR) has increased from 1.45 to 1.54. Which of the following statements is LEAST likely to be correct? The change of the internal purchasing power of the Euro is different from the change of its external purchasing power. The Euro has a real appreciation against the Australian dollar. Absolute purchasing power parity has been violated. O Relative purchasing power parity has been violated. O The nominal exchange rate S(AUD/EUR) should remain unchanged
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