Explain why an exchange rate model based on PPP is a long run theory.
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Q33: Under PPP (and by the Fisher Effect),
Q34: Under the monetary approach to the exchange
Q35: Present and explain the Fundamental Equation of
Q36: What effect do non-tradable goods have on
Q37: Under sticky prices
A) an interest rate rise
Q39: Which of the following statements is the
Q40: What are the predictions for the long-run
Q41: In practice
A) changes in national price levels
Q42: Which one of the following statements is
Q43: An increase in the world relative demand
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