Which of the following is not a feature of the absolute purchasing parity theory?
A) Theoretical exchange rate at which producers determine how much will be needed to manufacture the same amount of goods and services in different countries
B) Assesses price at home vs. price in foreign country
C) Optimal exchange rate at which consumers are indifferent to a purchase
D) Determines how much currency will be needed to buy the same amount of goods and services in different countries
Correct Answer:
Verified
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