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1.What is the formula for finding the change in exchange rate based on purchasing power parity? A. The spot exchange rate is equivalent to the

1.What is the formula for finding the change in exchange rate based on purchasing power parity?

	A.	The spot exchange rate is equivalent to the foreign inflation rate divided by the domestic inflation rate
	B.	The spot exchange rate is equivalent to the domestic inflation rate divided by the foreign inflation rate
	C.	The spot exchange rate is equivalent to the foreign inflation rate minus the domestic inflation rate
	D.	The spot exchange rate is equivalent to the domestic inflation rate minus the foreign inflation rate

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