MCQOPTIONS
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| 1. |
Purchasing-power parity (PPP) refers to__________ |
| A. | he concept that the same goods should sell for the same price across countries after exchange rates are taken into account |
| B. | he concept that interest rates across countries will eventually be the same |
| C. | he orderly relationship between spot and forward currency exchange rates and the rates of interest between countries |
| D. | he natural offsetting relationship provided by costs and revenues in similar market environments |
| Answer» B. he concept that interest rates across countries will eventually be the same | |