Which of the Following States That the Percentage Change in the Exchange

question 44

Multiple Choice

Which of the following states that the percentage change in the exchange rate is equal to the difference in the percentage change in the price level in the two countries?

• A)The relative theory of exchange rate determination
• B)The absolute purchasing-power parity theory
• C)The relative purchasing-power parity theory
• D)The absolute theory of exchange rate

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Diesel Fuel

A type of fuel derived from petroleum, used in diesel engines.

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A unit of volume for fluid measure equal to four quarts, used in the United States.

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A unit of time equal to sixty seconds or one-sixtieth of an hour.

Hours

A unit of time equal to 60 minutes.