Question: The PPP hypothesis implies that the real exchange rate must be equal to which of the following? Select all that apply. a. eP*/P, where P

The PPP hypothesis 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. P*/P, where P is the aggregate price level in home country, P* in foreign country

c. eP/P*, where P is the aggregate price level in home country, P* in foreign country

d. 1

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