If the percentage change in the exchange rate is equal to the inflation differential between two countries, then relative PPP holds.
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Q135: PPP is used as a benchmark to
Q136: PPP is used as a benchmark to
Q137: PPP should be thought of as a
Q138: Absolute PPP states that the percentage change
Q139: If absolute PPP holds, then relative PPP
Q141: If relative PPP holds, then absolute PPP
Q142: Relative PPP states that the percentage change
Q143: If a U.S. dollar will buy as
Q144: If the inflation differential between Mexico and
Q145: In the short run we expect that
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