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Chako Chako
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8 years ago
In the long run
A) exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets.
B) exchange rates are unlikely to obey relative PPP when all disturbances are monetary in nature.
C) exchange rates obey absolute PPP when all disturbances are monetary in nature.
D) exchange rates obey absolute PPP when all disturbances occur in the output markets.
E) exchange rates obey relative PPP when all disturbances occur in the output markets.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
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#3
7 years ago
Don't forget to vote my answer as best Nerd Face
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