According to the purchasing power parity theorem,if a dollar is converted into another currency and spent abroad,then the real purchasing power of the dollar is:

Question

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The purchasing power parity theorem suggests that the exchange rate between two currencies should adjust to equalize the price of a basket of goods and services in both countries. Therefore, in theory, the real purchasing power of the dollar should be the same at home or abroad.

According to the Purchasing Power Parity Theorem,if a Dollar Is