Given a home country and a foreign country, purchasing power parity suggests that:
A. the inflation rates of both countries will be the same.
B. the nominal interest rates of both countries will be the same.
C. the inflation rates and the nominal rates of both countries will be the same.
D. none of these.
Answer:D
Given a home country and a foreign country, purchasing power parity suggests that:
A. the inflation rates of both countries will be the same. B. the nominal interest rates of both countries will be the same. C. the inflation rates and the nominal rates of both countries will be the same. D. none of these.