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Explain Why Economists Do Not Use Exchange Rates to Compare

question 26

Essay

Explain why economists do not use exchange rates to compare standards of living across countries.Also,discuss what economists do to avoid these problems.


Definitions:

Federal Troops

Military forces deployed by the federal government of a nation, often during emergencies or to maintain order.

Public Order

The general societal condition in which public laws, norms, and standards are respected and maintained, ensuring community safety and harmony.

Writ of Habeas Corpus

A legal order that requires a person under arrest to be brought before a judge or into court, to secure the person's release unless lawful grounds are shown for their detention.

Constitutional Provision

A specific article, amendment, or clause within a constitution that outlines the structure, powers, and limits of a government's branches and the rights of its citizens.

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