Absolute purchasing power parity (PPP) can be written as follows:
$$e \times p^* = p$$
...where $e$ is the nominal exchange rate measured in home country currency per unit of foreign currency, $p$ is the home country currency cost of a basket of home goods, and $p^*$ is the foreign currency price of a foreign basket.
Which of the following assumptions are necessary for absolute PPP. Select ALL correct responses.