Which One of the Following Formulas Expresses the Absolute Purchasing

question 204

Multiple Choice

Which one of the following formulas expresses the absolute purchasing power parity relationship between the Canadian dollar and the British pound?

• A) S₀ = P_UK *P_CDN
• B) R_CDN = F_t *R_UK
• C) P_UK = S₀*P_CDN
• D) F_t = R_CDN *R_UK
• E) S₀*F_t = P_UK * P_CDN

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