According to the Purchasing-Power-Parity Theory, the U

Multiple Choice

According to the purchasing-power-parity theory, the U.S.dollar maintains its purchasing-power parity if it depreciates by an amount equal to the excess of

A) U.S. interest rates over foreign interest rates.
B) foreign interest rates over U.S. interest rates.
C) U.S. inflation over foreign inflation.
D) foreign inflation over U.S. inflation.