Which of the Following Does Purchasing-Power Parity Imply

Multiple Choice

Which of the following does purchasing-power parity imply?

A) The purchasing power of the dollar is the same in the U.S.as in foreign countries.
B) The price of domestic goods relative to foreign goods cannot change.
C) The nominal exchange rate is the ratio of U.S.prices to foreign prices.
D) All of the above are correct.