Multiple Choice
If purchasing-power parity holds,a dollar will buy
A) one unit of each foreign currency.
B) foreign currency equal to the U.S.price level divided by the foreign country's price level.
C) enough foreign currency to buy as many goods as it does in the United States.
D) None of the above is implied by purchasing-power parity.
Correct Answer:
Verified
Correct Answer:
Verified
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