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Define Purchasing Power Parity And Interest Rate Parity And Evidence For And Against Them

Question

Clearly explain why is meant by Purchasing Power Parity (PPP) and Interest Rate Parity (IRP). What evidence is there for and against this theory?

Summary

The question belongs to Finance and it discusses about Purchasing Power Parity and Interest Rate Parity and the evidence for and against the theory. These have been explained in the solution in detail.

Total Word Count 1611

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