Multiple Choice
Given a home country and a foreign country, purchasing power parity suggests that:
A) the inflation rates of both countries will be the same.
B) the nominal interest rates of both countries will be the same.
C) the inflation rates of both countries will be the same AND the nominal interest rates of both countries will be the same.
D) None of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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