Suppose prices are equal in europe in euros and the us in


Suppose prices are equal in Europe (in euros) and the US (in dollars) at the end of 2006. In 2007, prices increase by 3% in Europe (in euros) and 1% in the US (in dollars). According to PPP, the euro should appreciate or depreciate? By how much?

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Business Economics: Suppose prices are equal in europe in euros and the us in
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