Which of the Following Statements Is the MOST Accurate

question 13

Multiple Choice

Which of the following statements is the MOST accurate?

• A) If PPP holds true, then the law of one price holds true for every commodity as long as the reference baskets used to reckon different countries' price levels are the same.
• B) If the law of one price holds true for every commodity, PPP must hold automatically.
• C) If the law of one price holds true for every commodity, PPP must automatically hold as long as the reference baskets used to reckon different countries' price levels are the same.
• D) If the law of one price does not hold true for every commodity, PPP cannot be true as long as the reference baskets used to reckon different countries' price levels are the same.
• E) If PPP holds true, then the law of one price must hold true automatically.

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Definitions:

Major Phobic

Not a standard psychiatric term; may refer to severe phobic disorders, which are intense, irrational fears of specific objects or situations.

Cyclothymic Episode

A period characterized by mood swings less severe than those in bipolar disorder, ranging from mild depression to emotional highs.

Panic Attacks

Sudden episodes of intense fear or acute discomfort, accompanied by physical symptoms such as palpitations, sweating, trembling, or feelings of doom.

Obsessive-Compulsive Disorder

A mental health disorder where a person has uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) they feel the urge to repeat over and over.