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If purchasing-power parity holds, then the value of the real exchange rate is…

If purchasing-power parity holds, then the value of the real exchange rate is equal to the difference in inflation rates between the two countries. nominal exchange rate is equal...

If purchasing-power parity holds, then the value of the real exchange rate is equal to the difference in inflation rates between the two countries. nominal exchange rate is equal to one. real exchange rate is equal to the nominal exchange rate. real exchange rate is equal to one.

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