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Question
If inflation in country A exceeds inflation in country B, purchasing power parity implies that:A. the currency of country B should depreciate relative to the currency of country A.
B. the inflation rate in country B will rise to match the inflation rate in country A.
C. the currency of country A will depreciate relative to the currency of country B.
D. the inflation rate in country A will fall to match the inflation rate in country B.
Answer
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