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
Correct Answer:
Verified
Correct Answer:
Verified
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