Which of the Following Is a FALSE Statement Concerning Purchasing

Multiple Choice

Which of the following is a FALSE statement concerning purchasing power parity?

A) Purchasing power parity states that dollars will tend to exchange for pounds at a rate that maintains a constant purchasing power of a given quantity of a currency.
B) It is rare to see deviations from the purchasing power parity value of currencies.
C) Over the long run, purchasing power parity exerts influence over exchange rates.
D) An overvalued dollar buys more in Britain than it does in the United States.