The theory of relative purchasing power parity A) can be used to expl

The theory of relative purchasing power parity

A) can be used to explain differences in real interest rates among countries.
B) holds extremely well in the short run.
C) does not hold well in the long run.
D) is used to explain the difference between U.S. and foreign treasury security yields.
E) seeks to explain changes in purchasing power parity over time.

ANSWER

E