In the long run,the exchange rate between two currencies is

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In the long run, the exchange rate between two currencies is influenced by purchasing power parity. Purchasing power parity is the idea that over time, exchange rates should adjust so that the same basket of goods and services costs the same in both currencies. This means that if the price level in one country increases relative to another, the exchange rate should adjust to reflect this change in relative prices. This helps to ensure that trade between countries is fair, and that there are no persistent trade imbalances.

In the Long Run,the Exchange Rate Between Two Currencies Is