According to the Purchasing Power Parity theory, the rate of exchange – McqOptions

MCQOPTIONS

1.	According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_
A.	their relative price levels
B.	their import and export volumes
C.	their import and export values
D.	their relative capital movements
Answer» B. their import and export volumes

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