The theory of purchasing power paritya assumes that, Ask an Expert

Economics

The theory of purchasing power parity:

a. assumes that inflation rates are roughly the same in most countries

b. was valid only under the gold standard

c. extends the law of one price to a group of goods

d. assumes that most changes in nominal exchange rates are the result of changes in real exchange rates

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91236082

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