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Over the Period from 1989-2002,an Examination of Purchasing Power Parity

Question 15

Multiple Choice
Over the period from 1989-2002,an examination of purchasing power parity between the United States and Canada shows that

Over the period from 1989-2002,an examination of purchasing power parity between the United States and Canada shows that


A) purchasing power parity held almost exactly between the two countries.
B) the real exchange rate has fluctuated, but has shown no trend.
C) Canada's real exchange rate vs. that of the United States has increased by approximately 40%.
D) the United States' real exchange rate vs. Canada has increased by approximately 40%.
E) purchasing power parity held in the short run only.

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