According to the Purchasing Power Parity Theorem,if a Dollar Is

question 120

Multiple Choice

According to the purchasing power parity theorem,if a dollar is converted into another currency and spent abroad,then the real purchasing power of the dollar is:

• A) lower at home than abroad.
• B) higher at home than abroad
• C) the same at home or abroad.
• D) can be higher or lower at home than abroad,depending on the exchange rate.

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Economic Relationship

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