Suppose the purchasing power parity theory is literally true.Which of the following would occur?
A) Some nations would devalue their currencies relative to the U.S. dollar, while other nations would revalue their currencies.
B) The price of a traded good would be the same everywhere in the world.
C) The price of a Big Mac would be the same everywhere in the world.
D) The exchange rate would be the same everywhere in the world.
Correct Answer:
Verified
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