Question: What is the Purchasing Power Parity ( PPP ) theory? A . Exchange rates should adjust to equalize the price of identical goods in different

What is the Purchasing Power Parity (PPP) theory?
A. Exchange rates should adjust to equalize the price of identical goods in different countries.
B. Exchange rates are determined by interest rate differentials.
C. Exchange rates are set by government interventions.
D. Exchange rates are based on historical prices.

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