True or False econ question?

Question

The real exchange rate between Canada and U.S. must be unity if LOOP is found held for all the common goods that are consumed in both countries. True or false?

Answer 1

True, unless one of the economies collapses, then there is no unity and you can bet the exchange rate will change.

Answer 2

what is LOOP?

Answer 3

I have no idea!

Answer 4

False - because it will actually be equal not unity but nominal exchange rate.