Question: please answer asap purchasing power parity states that the difference between changes over time in product-price levels in two countries will be offset by the

please answer asap

purchasing power parity states that the difference between changes over time in product-price levels in two countries will be offset by the change in the exchange rate over this time. Partial Relative Absolute Full Question 4 (1 point) According to the relative version of purchasing power parity, when the inflation differential between the foreign country and the home country is positive the domestic currency tends to appreciate. the inflation rate in the home country tends to decrease. the domestic currency tends to depreciate. the inflation rate in the home country overshoots

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