Clearly explain why is meant by purchasing power parity ppp, Finance Basics

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Clearly explain why is meant by purchasing power parity ppp

Problem:

Clearly explain why is meant by Purchasing Power Parity (PPP) and Interest Rate Parity (IRP). What evidence is there for and against this theory?

Summary of question:

This question is basically belongs to Finance as well as it discusses about Purchasing Power Parity as well as Interest Rate Parity and the evidence for and against the theory. These have been stated in the solution comprehensively.

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Finance Basics: Clearly explain why is meant by purchasing power parity ppp

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Finance Basics: Clearly explain why is meant by purchasing power parity ppp

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