Differences in Price Levels

question 70

Multiple Choice

Differences in price levels

• A)explain well actual exchange rate movements.
• B)are not capable of explaining well actual exchange rate movements, particularly in the short run.
• C)have been small for most countries in the post-World War II period.
• D)only can be explained by the fact that little foreign trade actually takes place.

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Definitions:

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Test-tube Method

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