Which Statement Best Describes Purchasing Power Parity

Multiple Choice

Which statement best describes purchasing power parity?

A) The expected depreciation of the Canadian dollar is currently lowering demand for it.
B) The price of apples is the same in Canada and the U.S., adjusting for the exchange rate.
C) The market feeling is that the Canadian dollar is overvalued and will likely depreciate.
D) The recent high Canadian interest rate has increased the demand for Canadian dollars.
E) None of the above.