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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