The purchasing power parity (PPP)theory tells us that a country with a high inflation rate will see

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According to PPP theory, a high inflation rate in a country will lead to a decrease in the purchasing power of its currency, resulting in a depreciation of its currency exchange rate. This is because the cost of goods and services in that country will increase compared to other countries, and as a result, foreign goods become comparatively cheaper, and exports become more expensive.

The Purchasing Power Parity (PPP)theory Tells Us That a Country