Which of the following is indicated by research regarding purchasing power parity (PPP)? There...

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Finance

Which of the following is indicated by research regarding purchasing power parity (PPP)?
There is no relationship between inflation differentials and exchange rate movements in the short run or long run.
PPP clearly holds in the long run.
PPP clearly holds in the short run.
Deviations from PPP are reduced in the long run.
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