Suppose prices are equal in europe in euros and the us in
Suppose prices are equal in Europe (in euros) and the US (in dollars) at the end of 2006. In 2007, prices increase by 3% in Europe (in euros) and 1% in the US (in dollars). According to PPP, the euro should appreciate or depreciate? By how much?
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suppose prices are equal in europe in euros and the us in dollars at the end of 2006 in 2007 prices increase by 3 in
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