The more homogeneous goods are,the more we expect the law of one price to hold.
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Q28: The empirical data indicate that in the
Q29: The higher the inflation differential between countries,the
Q30: PPP holds better for low-inflation countries.
Q31: If relative PPP held,then the real exchange
Q32: If absolute PPP holds,then the real exchange
Q34: Suppose a year ago the exchange rate
Q35: Studies of PPP covering many years will
Q36: If absolute PPP holds,then relative PPP will
Q37: The only reason that exchange rates change
Q38: PPP is a theory of real exchange
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