Which of the Following Statements Is the MOST Accurate

question 65

Multiple Choice

Which of the following statements is the MOST accurate?

• A) The law of one price applies only to the general price level.
• B) The law of one price applies to the general price level while PPP applies to individual commodities.
• C) The law of one price applies to individual commodities while PPP applies to both the general price level and to individual commodities.
• D) PPP applies only to individual commodities.
• E) The law of one price applies to individual commodities while PPP applies to the general price level.

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Definitions:

Cent

A unit of currency equaling one-hundredth of various currencies, including the US dollar and the Euro.

Significant Figures

The digits in a number that are meaningful in terms of accuracy or precision, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 used to express quantities in fractions of a hundred.

Accurate

A term describing information or measurements that are correct, precise, and free of errors.