Multiple Choice
The theory of purchasing power parity says:
A) the real exchange rate is always greater than one.
B) a dollar should buy the same goods no matter where in the world you go.
C) the dollar price of a basket of goods in the U.S. should equal the yen price of a basket of goods in Japan.
D) the real exchange rate is always less than one.
Correct Answer:
Verified
Correct Answer:
Verified
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