"The Rate of Change in Commodity Price Levels Between Two

question 83

Multiple Choice

"The rate of change in commodity price levels between two countries determines the rate of change in exchange rates between the two countries." This is a statement of:

• A) Absolute Purchasing Power Parity.
• B) Relative Purchase Power Parity.
• C) International Fisher Effect.
• D) Interest Rate Parity.
• E) Unbiased Forward Rates.

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