Multiple Choice
The data on exchange rate and price-level fluctuations in the United States and the United Kingdom from 1975 to 2010 suggest that:
A) absolute and relative PPP hold in the long run.
B) absolute and relative PPP hold in the short run.
C) absolute and relative PPP do not hold in the long run.
D) It is impossible to determine the relationship between inflation and exchange rates between the two nations.
Correct Answer:
Verified
Correct Answer:
Verified
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