Answers.com > Wiki Answers > Categories > Uncategorized > Purchasing power parity theory is related with?

Purchasing power parity theory is related with?

In: Uncategorized [Edit categories]

Answer:

exchange rate

First answer by ID0241355057. Last edit by ID0241355057. Question popularity: 2 [recommend question].

Can you answer these Uncategorized questions?

	How did women in the middle ages do their makeup?	Answer it!
	What is the Australia Electoral Commission?	Answer it!
	How do you breed a rainbow?	Answer it!
	What does blueprint act mean?	Answer it!
	What is the easiest way to shape metal?	Answer it!

When does the purchasing power parity theory work well?
The PPP theory seems to work well in the long run when the differences in inflation rates between two countries are relatively large.
What is the purchasing power parity in China?
The PPP conversion rate for China is 3.69 Yuan Renminbi (CNY) for 1 US dollar (IMF calculations, 2008 data, estimates). The real exchange rate (as of 2009-04-03) is 6.83 Yuan Renminbi for 1 US...
What is purchasing power parity?
The purchasing power parity (PPP) theory uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power. Developed by Gustav Cassel in 1920, it is based on the law...
What does purchasing power parity reflect?
PPP exists between any two currencies whenever changes in the exchange rate exactly reflect relative changes in price levels in two countries.
What is Canada's GDP purchasing power parity?
Canada's GDP power parity is $1.271 trillion.