The Reason for the Slow Adjustment of the Real Exchange

question 16

Multiple Choice

The reason for the slow adjustment of the real exchange rate toward purchasing power parity is that

• A)there are always transportation costs involved in the movement of goods across borders
• B)governments may have imposed tariffs on foreign goods
• C)certain goods cannot be traded
• D)people in different countries do not necessarily consume the same market basket of goods
• E)all of the above

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Definitions:

Subject Matter

The topic or substance of discussion, debate, analysis, or interest, particularly in a legal document or context.

Rescindable

Refers to a contract or deal that can be legally canceled or revoked.

Voidable

A contract or act that is voidable can be legally declared invalid by one of the parties involved, often due to reasons such as fraud or coercion.

Implied-In-Law

A legal term referring to rights or obligations that are enforced by a court, not because of an agreement or contract, but to avoid injustice.