Examlex
The authors state that empirical tests of purchasing power parity "have, for the most part, not proved PPP to be accurate in predicting future exchange rates." The authors then state that PPP does hold up reasonably well in two situations. What are some reasons why PPP does not accurately predict future exchange rates, and under what conditions might we reasonably expect PPP to hold?
Interest Rate
The portion of a loan subject to interest for the borrower, frequently shown as an annual percentage of the outstanding sum of the loan.
Antique Price
The market value of articles that have high value because of their considerable age and historical significance.
Interest Rate
The percentage of the borrowed sum charged to the borrower as interest, generally represented as an annual rate of the total loan amount.
Antique Price
The market value or cost of an object that has historical significance or is considered collectible due to its age.
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