Question: Please note that there is more than one answer for the following question. This is the third time that I am submitting this question that

Please note that there is more than one answer for the following question. This is the third time that I am submitting this question that I have got WRONG twice. The first time answering b, c and d. The second time answering d only. Thank you.

The Purchasing Power Parity Hypothesis (PPP) implies that the real exchange rate must be equal to which of the following? Select all that apply.

a) eP*/P, where P is the aggregate price level in home country, P* in foreign country

b) eP/P*, where P is the aggregate price level in home country, P* in foreign country

c) 1

d) P*/P, where P is the aggregate price level in home country, P* in foreign country

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