Purchasing-power parity is a theory that states that real rates of return are the same across the world.

Name: Purchasing-power parity is a theory that states that real rates of return are the same across the world.
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Purchasing-power parity is a theory that states that exchange rates should adjust in the long run to equalize the prices of identical goods and services in different countries. It does not necessarily mean that real rates of return are the same across the world.

Purchasing-Power Parity Is a Theory That States That Real Rates