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Which of the following types of evidence provides support of relative PPP? (a) Inflation rates tend to be higher in countries with higher rates of
Which of the following types of evidence provides support of relative PPP? (a) Inflation rates tend to be higher in countries with higher rates of money growth. (b) Interest rates tend to be higher in countries with higher rates of money growth. (c) Rates of currency depreciation tend to be higher in high interest rate countries. (d) Rates of currency depreciation tend to be higher in high inflation countries. (e) Real exchange rates are very volatile at high time frequencies
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