If Absolute Purchasing Power Parity Is Said to Hold for Some

question 222

True/False

If absolute purchasing power parity is said to hold for some good, then it must be true that there are
no significant barriers to trading the good.

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Definitions:

Principal

The amount of money originally invested or loaned, on which basis interest and returns are calculated.

Agent's Contract

A legal agreement that specifies the rights and obligations of an agent acting on behalf of another party, the principal.

Bound

Being legally or morally obligated to do something or restricted by some form of constraint.

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.