According to PPP theory,the rate which the U.S.dollar appreciates against the British pound is equal to
A) the British nominal interest rate minus the U.S.nominal interest rate.
B) the British real interest rate minus the U.S.real interest rate.
C) the British inflation rate minus the U.S.inflation rate.
D) the U.S.nominal GDP growth rate minus the British nominal GDP growth rate.
E) the U.S.current account surplus with Britain as a percentage of the U.S.overall balance of payments.
Correct Answer:
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