According to Purchasing Power Parity (PPP) Theory, the Price of a "Basket

Multiple Choice

According to purchasing power parity (PPP) theory, the price of a "basket of goods" should be

A) the sum of the required "real" rate of interest.
B) unchangeable based on the forward exchange rate.
C) roughly equivalent in each country in relatively efficient markets.
D) discounted to reflect trade barriers.
E) focused strictly on consumer and not industrial goods.