Which of the Following Versions of PPP Is Thought to Be

question 15

Multiple Choice

Which of the following versions of PPP is thought to be the most relevant to possibly explaining what drives exchange rate values?

• A) The Law of One Price
• B) Absolute Purchasing Power Parity
• C) Relative Purchasing Power Parity
• D) The International Fisher Effect

---

Definitions:

Dorsolateral Prefrontal Cortex

An area of the frontal lobes involved in executive functions, such as working memory, planning, and decision-making.

Dendritic Spines

Small protrusions from a neuron's dendrite that typically receive synaptic inputs from axons, playing a key role in synaptic strength and plasticity.

Hippocampal Pyramidal Cells

Neurons located in the hippocampus, characterized by their pyramid-shaped cell bodies, playing a critical role in learning and memory.