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If the prices for the same goods and services are different in two nations, the exchange rate adjusts over the long run to achieve A. interest rate...

If the prices for the same goods and services are different in two​ nations, the exchange rate adjusts over the long run to achieve

A.

interest rate parity.

B.

zero net exports for each nation.

C.

balance of payments account between the two nations equal to zero.

D.

purchasing power parity between the two currencies.

E.

a zero current account balance between the two nations.

Top Answer

D. purchasing power... View the full answer

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Other Answers

d) P urchasing power... View the full answer

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