How will the euro value against the dollar be affected


PPP Applied to the Euro

Response to the following problem:

Assume that several European countries that use the euro as their currency experience higher inflation than the United States, while two other European countries that use the euro as their currency experience lower inflation than the United States. According to PPP, how will the euro's value against the dollar be affected?

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Financial Management: How will the euro value against the dollar be affected
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