The only reason that exchange rates change is because overall price levels in the countries change.
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Q32: If absolute PPP holds,then the real exchange
Q33: The more homogeneous goods are,the more we
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
Q38: PPP is a theory of real exchange
Q39: Endogenous variables tend to be less volatile
Q40: If the law of one price holds
Q41: Empirical studies find that exchange rates are
Q42: What are the main reasons for deviations
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