In Essence,PPP Theory Predicts That

Multiple Choice

In essence,PPP theory predicts that

A) there is no relationship between changes in relative prices and changes in exchange rates.
B) changes in relative prices will result in stability in exchange rates.
C) stability in relative prices will result in a change in exchange rates.
D) changes in relative prices will result in a change in exchange rates.
E) changes in market barriers will result in changes in exchange rates