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According to the 'Theory of Purchasing Power Parity', If the Inflation

Question 105

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According to the 'theory of purchasing power parity', if the inflation rate in the United States of America is greater than the inflation rate in Australia, explain what should happen to the exchange rate between the United States (US)dollar and the Australian dollar.
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According to the 'theory of purchasing power parity', if the inflation rate in the United States of America is greater than the inflation rate in Australia, explain what should happen to the exchange rate between the United States (US)dollar and the Australian dollar.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

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The value of the US dollar sho...

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