Suppose that US prices rise 4 percent over the next year whileprices in Mexico rise 6%. According to the purchasing power paritytheory of exchange rates what should happen to the exchange ratebetween the dollar and the peso?
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
Δ