The PPP conclusion that exchange rates are determined solely by changes in relative price levels Select one: O a. rests on the assumption that all goods are identical in both countries O b. does not take into account that some goods and services are not traded O c. is accurate as a long run proposition O d. both a and b are correct e. all are correct

The PPP conclusion that exchange rates are determined solely by changes in relative price levels Select one: O a. rests on the assumption that all goods are identical in both countries O b. does not take into account that some goods and services are not traded O c. is accurate as a long run proposition O d. both a and b are correct e. all are correct

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter19: International Finance And The Foreign Exchange Market

Section: Chapter Questions

Problem 1CQ

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