Economy, asked by poonamsonakiya, 7 months ago

Under flexible exchange rates a Canadian trade deficit with Britain will cause the dollar price of pounds to rise. True or False

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Answered by rajendrawange7

Answer:

Purchasing Power Parity (PPP)

Exchange Rates in the Long Run: The Purchasing Power Parity (PPP) theory is used to make long-run predictions about exchange rates in a flexible exchange rate system.

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