Which of the Following Is a Reason for the Failure

question 36

Multiple Choice

Which of the following is a reason for the failure of PPP to predict exchange rates accurately?

• A)PPP takes transportation costs into consideration while predicting exchange rates.
• B)PPP assumes no barriers to international trade while predicting exchange rates.
• C)PPP considers the role of people's confidence and beliefs about a nation's economy in exchange rate predictions.
• D)PPP does not take into account the effect of the market forces of demand and supply.

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Definitions:

Cognitive Abilities

The mental capabilities that involve the acquisition, processing, and use of knowledge, such as thinking, reasoning, and memory.

Males

The sex that is characterized by the production of small mobile sperm, typically having XY chromosomes in mammals.

Females

Refers to the sex or gender that is typically characterized by the ability to produce ova or eggs, and in mammalian species, usually possesses two X chromosomes.

Homosexual Males

Men who are emotionally, romantically, or sexually attracted to other men.