Research indicates that deviations from purchasing power parity (PPP) are reduced over the long run.

Name: Research indicates that deviations from purchasing power parity (PPP) are reduced over the long run.
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Question

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Empirical studies have shown that deviations from PPP tend to decrease over time, suggesting that currencies eventually converge to a common level of purchasing power. However, this convergence process may take years or even decades to occur fully.

Research Indicates That Deviations from Purchasing Power Parity (PPP) Are