Which of the Following Explains Why Purchasing Power Parity Does

question 108

Multiple Choice

Which of the following explains why purchasing power parity does not completely explain long-run fluctuations in exchange rates?

• A)Some goods and services produced in any country are not traded internationally.
• B)Consumer preferences for goods and services across countries are very similar.
• C)Most countries do not impose barriers to trade.
• D)Most countries have free markets with little, if any, government regulation.
• E)The prices of most internationally traded commodity are set in U.S.dollars.

---

Definitions:

Aboriginal People

Indigenous inhabitants of a region, often used to refer to the first peoples of Canada and their descendants, who maintain distinct cultural and social identities.

Canadian School Textbooks

Educational books used in the curriculum of Canadian schools, designed to meet the educational requirements of the Canadian education system.

Noble Savages

A concept which idealizes indigenous peoples as living in a state of nature, uncorrupted by civilization but innately virtuous and peaceful.

Genocide And Expulsion

The deliberate killing of a large group of people, especially those of a particular ethnic group or nation, accompanied by the forcible removal of survivors.