The 'Theory of Purchasing Power Parity' Implies That

Multiple Choice

The 'theory of purchasing power parity' implies that:

A) in the long run, the prices of goods in different countries will be the same when measured in a common currency.
B) the prices of goods in different countries are always the same.
C) the nominal exchange rates will equate over time.
D) demand and supply have no influence over the exchange rate.