True or False

1-Purchasing power parity implies that any differences in inflation rates will be offset by a change in the exchange rate.

2-If the price of a Big Mac in the United States is $2.56, and in Japan it is yen 300, then the implied exchange rate is yen 117.19/$US.

3-The terms transaction exposure and economic exposure are two names for the same foreign exchange risk.

4-Purchasing power parity provides a better long-run indicator for future price changes than short-run indicato

5-The risk that an unfriendly government might expropriate a firm's assets is called political risk.