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:

Direct Supervisors

Immediate superiors who manage employees on a day-to-day basis, overseeing their work and providing feedback, guidance, and support.

Mum Effect

The tendency to avoid communicating unfavorable news to others due to fear of the negative consequences associated with the disclosure.

Encode

The process of converting ideas and thoughts into a communicable form, such as speech, writing, gestures, or another mode of expression.

Withholding Information

The act of intentionally not sharing or providing relevant information in a workplace or personal context.