What Two General Conclusions Can Be Made from the Empirical

question 38

Multiple Choice

What 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.

---

Definitions:

Grist

Material or ideas ready to be used or turned into something valuable.

Three-dimensional

Pertaining to or having length, width, and depth.

Cognitive Control

The ability to control thoughts, behaviors, and emotions to achieve goals or respond to environmental demands.

Shifting Attention

The cognitive process of changing focus from one subject or object to another.