Purchasing Power Parity by Definition States That The

Purchasing power parity by definition states that the:

A) Amount of goods that can be acquired using a spot rate is equal to the amount of goods that can be purchased if a forward rate is used.
B) Cost of an item is the same regardless of the currency in which it is denominated.
C) Inflation rate over time is equal to the change in the exchange rate over the same period of time.
D) Percentage change in the inflation rate is equal to the percentage change in the exchange rate.
E) Real rate of interest is constant for all countries.