In December 2016, you needed 83 percent more pesos to buy one U.S. dollar than you had
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In December 2016, you needed 83 percent more pesos to buy one U.S. dollar than you had needed in December 2004. Over the same time period, the consumer price index in Mexico increased 57.8 percent, and the consumer price index in the United States increased 26.7 percent. Are these data consistent with the theory of purchasing power parity? Briefly explain.
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These data are consistent with the theory of purchasing power parity but a...View the full answer
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Divya Munir
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
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