Purchasing power parity can be used as
A) a short-term gauge, but in the long run large deviations in currency values can exist.
B) a short-term and long-term gauge of relative currency values.
C) a long-run gauge, but in the short run large deviations in currency values can exist.
D) an indicator of how interest rates will change in the short run.
E) an indicator of how interest rates will change in the long run.
Correct Answer:
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