Deviations from purchasing power parity in real exchange rates can persist for several years.

Name: Deviations from purchasing power parity in real exchange rates can persist for several years.
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Question

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Deviations from purchasing power parity can be caused by many factors, such as differences in inflation rates, trade barriers, and currency manipulation. These factors can take time to adjust, causing deviations in real exchange rates to persist for several years.

Deviations from Purchasing Power Parity in Real Exchange Rates Can