The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as Options: A . &nbspliquidated power parity B . &nbsppurchasing power parity C . &nbspselling power parity D . &nbspvolatile power parity

The theory which considers the change in exchange rate with the fluctuations in

Question

The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as

Options:

A . liquidated power parity

B . purchasing power parity

C . selling power parity

D . volatile power parity

Answer: Option B
Answer: (b).purchasing power parity

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