The theory of purchasing power paritya seems to generally, Ask an Expert

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The theory of purchasing power parity

a. seems to generally be more accurate in the short run than in the long run.

b. implies that a country with relatively high inflation rates should impose tariffs on imported goods.

c. says that the currency of a country with relatively high inflation should grow weaker over time, all other things equal.

d. all of the above.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91546228

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