The PPP theory would be most useful in predicting:

Group of answer choices

long-run changes in the exchange rate for a country that mainly produces heavily traded, standardised goods

short-run changes in the exchange rate for a country that mainly produces heavily traded, standardised goods

short-run changes in the exchange rate for a country that mainly produces lightly traded, standardised goods

long-run changes in the exchange rate for a country that mainly produces lightly traded, non-standardised goods