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Which one of the following formulas expresses the absolute purchasing power parity relationship between the U.S. dollar and the British pound? P UK = S

Which one of the following formulas expresses the absolute purchasing power parity relationship between the U.S. dollar and the British pound?

  • PUK = S0(PUS)

  • PUS = Ft(PUK)

  • Ft = PUS(PUK)

  • S0 = PUK(PUS)

  • S0(Ft) = PUK(PUS)

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