According to the Purchasing Power Parity Theory, in the Long

question 202

Multiple Choice

According to the purchasing power parity theory, in the long run

• A)the exchange rate between any two currencies should be equal all over the world
• B)the value of the dollar should equal the value of the pound which should equal the value of the yen
• C)inflation rates should equalize around the world
• D)interest rates should equalize around the world
• E)the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain

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Definitions:

Thirteenth Amendment

An amendment to the United States Constitution, ratified in 1865, that abolished slavery and involuntary servitude, except as punishment for a crime.

Constitutional Amendment

A modification or change to a constitution, which in the United States requires a specific and rigorous process involving both Congress and the states.

Abolished Slavery

The action or legal process of formally ending the practice or institution of slavery, where individuals are owned by others as property.

Freed Slaves

Individuals who were emancipated from slavery, often after legal acts or at the conclusion of conflicts such as the Civil War.