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Which one of the following is the most appropriate statement for the relative purchasing power...

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Which one of the following is the most appropriate statement for the relative purchasing power parity? O A. Relative purchasing power parity does show you how the absolute level of the exchange rate is determined. Relative purchasing power parity does not tell what determines the change in the exchange rate over time. B. Transaction cost should be zero in order for relative purchasing power parity to hold. Exchange rate changes due to a relative difference in inflation rates between the two countries. D. Exchange rate adjusts to maintain constant purchasing power. E

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