Which of the Following Does Purchasing-Power Parity Imply

Multiple Choice

Which of the following does purchasing-power parity imply?

A) the foreign price level times the nominal exchange rate (given as amount of foreign currency per dollar) equals the U.S.price level.
B) The price of domestic goods relative to foreign goods cannot change.
C) The nominal exchange rate is the ratio of foreign prices to U.S.prices.
D) All of the above are correct.