Multiple Choice
In the long run
A) exchange rates obey relative PPP when all disturbances occur in the output markets.
B) exchange rates obey absolute PPP when all disturbances occur in the output markets.
C) exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets.
D) exchange rates are unlikely to obey relative PPP when all disturbances are monetary in nature.
E) exchange rates obey absolute PPP when all disturbances are monetary in nature.
Correct Answer:
Verified
Correct Answer:
Verified
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