Which of the Following Statements Is the MOST Accurate

question 31

Multiple Choice

Which of the following statements is the MOST accurate?

• A) Relative PPP may be valid even when absolute PPP is not, provided the factors causing deviations from absolute PPP are more or less stable over different commodities space.
• B) Absolute PPP may be valid even when relative PPP is not, provided the factors causing deviations from relative PPP are more or less stable over time.
• C) Relative PPP may be valid even when absolute PPP is not, provided the factors causing deviations from absolute PPP are more or less stable over time.
• D) Relative PPP is not valid when absolute PPP is not.
• E) Relative PPP is only valid when absolute PPP is valid, providing the factors causing deviations from relative PPP are more or less stable over time.

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Definitions:

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.