According to the purchasing power parity theory, in the long run
A) the exchange rate between any two currencies should be equal all over the world
B) the value of the dollar should equal the value of the pound which should equal the value of the yen
C) inflation rates should equalize around the world
D) interest rates should equalize around the world
E) the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain
Correct Answer:
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A)is more a
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