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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