According to the purchasing power parity theory, the exchange rate would eventually adjust such that they equalize the various:

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According to the purchasing power parity theory, the exchange rate would eventually adjust such that they equalize the various currencies' values in terms of goods and services. This means that the same amount of goods and services should cost the same in different economies once adjusted for the exchange rate. In other words, currencies should have the same purchasing power in different countries.

According to the Purchasing Power Parity Theory, the Exchange Rate