Two General Conclusions Can Be Made from the Empirical Tests

question 38

Multiple Choice

Two general conclusions can be made from the empirical tests of purchasing power parity (PPP) :

• A) PPP holds up well over the short run but poorly for the long run, and the theory holds better for countries with relatively low rates of inflation.
• B) PPP holds up well over the short run but poorly for the long run, and the theory holds better for countries with relatively high rates of inflation.
• C) PPP holds up well over the long run but poorly for the short run, and the theory holds better for countries with relatively low rates of inflation.
• D) PPP holds up well over the long run but poorly for the short run, and the theory holds better for countries with relatively high rates of inflation.

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Definitions:

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Digitally Altered Photos

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Hypnosis

A social interaction in which one person (the hypnotist) suggests to another (the subject) that certain perceptions, feelings, thoughts, or behaviors will spontaneously occur.

False Memories

A psychological phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.