If Absolute PPP Holds,then the Real Exchange Rate Must Equal

question 10

True/False

If absolute PPP holds,then the real exchange rate must equal 1.

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Definitions:

Idle Cash

Refers to the money that a company has not invested or used in any way to earn more income.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, by reporting these profits proportional to their ownership percentage.

Dividend Revenue

Dividend revenue refers to the income earned by investors or companies from holding shares of other entities that pay dividends.