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This Question: 1 pt 15 of 20 (14 complete This Out: 20 piso According to the purchasing power party theory, relative price le
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Ans) Purchasing power parity states that the exchange rate between two countries should be equal to the ratio of price level of basket of goods and services.

If the prices in South Korea increase, it means that same good will become more costly than before. This means that value of won will decrease.

Option a.

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