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Which one of the following parity theories states that, in its absolute version, price levels globally should be equal when expressed in a common currency?

Which one of the following parity theories states that, in its absolute version, price levels globally should be equal when expressed in a common currency?
Question 5Answer
a.
international Fisher effect
b.
the unbiased forward rate
c.
interest rate parity
d.
the Balance of Payment identity
e.
purchasing power parity

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