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Unformatted text preview: -Purchasing power parity means equal value of money o If purchasing power parity does not prevail, the demand for Canadian dollars changes and the supply of Canadian dollars changes -In the short run, the nominal exchange rate in the exchange rate that sets the quantity of Canadian dollars demanded equal to the quantity of Canadian dollars supplied....
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This note was uploaded on 07/31/2011 for the course ECON 1010 taught by Professor Noordeh during the Spring '08 term at York University.
- Spring '08