The Purchasing Power Parity Concept Suggests That ________

Multiple Choice

The purchasing power parity concept suggests that ________.

A) in emerging markets, the ability to buy goods and services depends on the influx of FDI from international MNEs
B) the fluctuation in exchange rates disrupts international trade because the value of goods and services is mostly inconsistent
C) in the future, a unified currency should be used to create equality in the global marketplace and to eliminate disparity
D) in the long run, exchange rates should move toward levels that would equalize the prices of an identical basket of goods and services in any two countries