Why is purchasing power parity theory likely to be defective, Microeconomics

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Why is purchasing power parity theory likely to be defective

Problem

Why is purchasing power parity theory likely to be a defective explanation for the level of an exchange rate in the short run? Why is it likely to be a more effective explanation for long-run exchange rates?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why is purchasing power parity theory likely to be defective

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