An article of clothing costs 40 euro in Finland and 50 US$ in the US. The exchange rate of the US dollar to the euro is
Posted: Sat Feb 19, 2022 2:44 pm
An article of clothing costs 40 euro in Finland and 50 US$ in
the US. The exchange rate of the US dollar to the euro is 1.25 US$
to one euro. Does the purchasing power theory hold in this case? If
so, why? If not, which economic forces could operate to make the
theory hold? (maximum 150 words).
the US. The exchange rate of the US dollar to the euro is 1.25 US$
to one euro. Does the purchasing power theory hold in this case? If
so, why? If not, which economic forces could operate to make the
theory hold? (maximum 150 words).