According to the Purchasing Power Parity Theory, What Should the Exchange

question 112

Multiple Choice

According to the purchasing power parity theory, what should the exchange rate reflect in the long run?  

• A) uniform rates between any two currencies 
• B) equal inflation rates around the world 
• C) equal interest rates around the world 
• D) differences in price levels

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The capability of individuals or organizations to effectively manage and adapt to changes.

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