Purchasing Power Parity's Assumption That the Real Exchange Is Constant

question 81

Multiple Choice

Purchasing power parity's assumption that the real exchange is constant

• A)is correct in nearly all instances.
• B)would be correct were it not for the existence of trade barriers.
• C)is not reasonable.
• D)is correct for trade between the United States and Japan, but incorrect in most other bilateral trading relations.

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