. Indicate whether the following statement is True of False. (4 marks) i) The real...
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Finance
. Indicate whether the following statement is True of False. (4 marks)
i) The real exchange rate is equal to 1, if the absolute purchasing power parity is not satisfied.
ii) The real exchange rate is not necessarily constant over time, if the relative purchasing power parity does hold.
iii) The deviation from absolute purchasing power parity is not constant in percentage, if the relative purchasing power parity is not violated.
iv) The real exchange rate will not fluctuate from time to time, if the deviation from absolute purchasing power parity is constant over time.
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