The Empirical Evidence on Purchasing Power Parity Over the Long

Multiple Choice

The empirical evidence on purchasing power parity over the long run seems to point out that:

A) the higher a country's inflation rate, the greater is the appreciation in the country's currency.
B) the theory of purchasing power parity cannot explain long-run changes in exchange rates.
C) the higher a country's inflation rate the greater is the depreciation in the country's currency.
D) there isn't any clear link between inflation rates and exchange rates.