Which of the Following Weakens the Link Between Relative Price

Multiple Choice

Which of the following weakens the link between relative price changes and changes in exchange rates predicted by purchasing power parity (PPP) theory by violating the assumption of efficient markets?

A) government intervention in cross-border trade
B) relationship between money supply and price inflation
C) impact of increase in currency on relative demand and supply conditions of currencies
D) excessive growth in money supply
E) insignificant impact of transportation costs on international trade