Which of the Following Quotations Best Describes Purchasing Power Parity

question 125

Multiple Choice

Which of the following quotations best describes purchasing power parity?

• A)"The recent high Canadian interest rate has increased demand for the Canadian dollar."
• B)"The market feeling is that the Canadian dollar is overvalued and will likely depreciate."
• C)"The price of bananas is the same in Canada and the United States, adjusting for the exchange rate."
• D)"The expected depreciation of the Canadian dollar is currently lowering demand for it."
• E)"Goods purchased in Canada are cheaper then in the United States."

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