Multiple Choice
Absolute PPP and relative PPP differ in what way?
A) Absolute PPP always holds but relative PPP may not.
B) Relative PPP may hold even when absolute PPP does not.
C) Relative and absolute PPP always hold.
D) Absolute PPP relates to changes in inflation and exchange rates, whereas relative PPP relates to their levels.
Correct Answer:
Verified
Correct Answer:
Verified
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