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Author Question: According to relative purchasing power parity, if Belgian prices are increasing 10% faster than ... (Read 115 times)

dbose

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on: Apr 25, 2021

Question 1

A theory stating that changes in inflation rates between two countries cause exchange rates to adjust is
◦ interest rate parity.
◦ exchange rate parity.
◦ relative purchasing power parity.
◦ absolute purchasing power parity.
◦ None of these.

Question 2

According to relative purchasing power parity, if Belgian prices are increasing 10% faster than Japanese prices
◦ the yen should fall 10% versus the Belgian franc.
◦ the yen should rise 10% versus the Belgian franc.
◦ prices in Belgium should fall 10%.
◦ prices in Japan should rise 10%.
◦ prices in Japan will rise 5% and the yen will rise 5%.
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Marked as best answer by dbose on Apr 25, 2021

blfontai

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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dbose

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

daiying98

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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