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All of the following, except one, are implications of the purchasing power parity theory. Which is the exception? Multiple Choice Inflation should lead to the depreciation of that country's currency. Exchange rates will adjust to ensure that the cost of living in one country is the same as that in another. The relative prices of products in different countries should be the same. The currencies of different countries should be at par. One hour's labour, of a given quality, should pay the same (though in different currencies) in all countries..

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All of the following, except one, are implications of the purchasing power parity theory. Which is the exception? Multiple Choice Inflation should lead to the depreciation of that country's currency. Exchange rates will adjust to ensure that the cost of living in one country is the same as that in another. The relative prices of products in different countries should be the same. The currencies of different countries should be at par. One hour's labour, of a given quality, should pay the same (though in different currencies) in all countries.

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  • 1. All of the following, except one, are implications of the purchasing power parity theory. Which is the exception? Multiple Choice Inflation should lead to the depreciation of that country's currency. Exchange rates will adjust to ensure that the cost of living in one country is the same as that in another. The relative prices of products in different countries should be the same. The currencies of different countries should be at par. One hour's labour, of a given quality, should pay the same (though in different currencies) in all countries.