Purchasing power parity implies that

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Purchasing Power Parity (PPP) implies that

a. In the long run, a forward exchange rate can purchase an interest rate swap for the same price as the spot rate.

b. In the medium run, a forward exchange rate can purchase an interest rate swap for the same price as the spot rate.

c. The short run, a given amount of money can buy the same amount of goods, whether they are purchased at home or abroad.

d. the long run, a given amount of money can buy the same amount of goods, whether they are purchased at home or abroad.

Reference no: EM13833966

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