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Two general conclusions can be made from the empirical tests of purchasing power parity PPP A PPP holds up well over the short run but poorly for the long run and the theory holds better for count

Two general conclusions can be made from the empirical tests of purchasing power parity (PPP):
A) PPP holds up well over the short run but poorly for the long run and the theory holds better for countries with 
relatively low rates of inflation.
B) PPP holds up well over the short run but poorly for the long run and the theory holds better for countries with 
relatively high rates of inflation.
C) PPP holds up well over the long run but poorly for the short run and the theory holds better for countries with 
relatively low rates of inflation.
D) PPP holds up well over the long run but poorly for the short run and the theory holds better for countries with 
relatively high rates of inflation. 

Apr 18 2021 View more View Less

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