Question

In your own words, analyze Purchasing Power Parity and the relationship to exchange rates.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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Purchasing power refers to the amount of goods and services which can be purchased with one unit of a currency. Purchasing power parity means that the real prices should be...

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