_ 8. Which of the following is true as per the long-term trends observed in the spot and the purchasing power exchange (PPP) rates between the US. and the UK during 1913-2004? a. The data invalidates the long-run PPP theory completely. b. The data showed that the long-run PPP theory always holds, with the spot exchange rate always being equal to the PPP rate, once equalized. c. The exchange rate closely tracked the trend in the market basket ratio. (1. The data showed that the short-run theory of PPP has more validity than the long-run theory. e. The data showed that the spot exchange rate and the PPP rate actually moved in opposite directions