Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 34, Problem 7QP
To determine

The details of purchasing power parity (PPP) theory.

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Explain purchasing power parity's importance when comparing countries.
What effect does a high exchange rate have on imports, exports, and that country's production?
How and why will switching from a flexible to fixed exchange rate regime affect exports as a percentage of GDP/ Exports-GDP-ratio
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