Does the exchange rate of your data appear to support the theory of Purchasing Power Parity?Requirements:
1 page descriptive analysis;
Graph of Nominal Exchange Rate and Relative Prices over time ,which has already given
First describe what is Purchasing Power Parity(the theory of Purchasing Power Parity)
Describe the trend or change in this graph(how exchange rate and relative price level change and how they are related)
Judge if the data conforms to the theory
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