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Two versions of the purchasing power parity (PPP) are the absolute PPP and the relative PPP. Suppose the government releases information that causes expectations that

Two versions of the purchasing power parity (PPP) are the absolute PPP and the relative PPP. Suppose the government releases information that causes expectations that the purchasing power of money in the future will be less than previous expectations. What will happen to the exchange rate today? Will both absolute PPP and relative PPP hold here or will only one hold? Support your answer.

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