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Author Question: The theory of relative purchasing power parity (Read 92 times)

DelorasTo

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on: Apr 25, 2021

Question 1

The idea behind ________ is that exchange rates must adjust over time to maintain the law of one price.
◦ arbitrage
◦ purchasing power arbitrage
◦ purchasing power parity
◦ exchange rate risk

Question 2

The theory of relative purchasing power parity
◦ can be used to explain differences in real interest rates among countries.
◦ holds extremely well in the short run.
◦ does not hold well in the long run.
◦ is used to explain the difference between U.S. and foreign treasury security yields.
◦ seeks to explain changes in purchasing power parity over time.
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Marked as best answer by DelorasTo on Apr 25, 2021

babybsemail

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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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DelorasTo

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

Chelseyj.hasty

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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