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The theory of purchasing power parity
a. seems to generally be more accurate in the short run than in the long run.
b. implies that a country with relatively high inflation rates should impose tariffs on imported goods.
c. says that the currency of a country with relatively high inflation should grow weaker over time, all other things equal.
d. all of the above.
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What are the historical returns for markets and what are the advantages and disadvantages of investing in each type of market?
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