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In general please briefly discuss the concept of PPP. What is the difference between absolute and relative PPP? In answering these questions, please present the formula for each concept and discuss the impact of the “independent” variables (i.e. prices, price levels, price changes) on the “dependent variable” (i.e. the exchange rate). (Note: your grade on this questions will largely depend on how well you relate the independent variables in the formula (price levels or changes in price levels) to the dependent variable (the exchange rate).

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Financial Management, Finance

Category:- Financial Management
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