Which of the Following Conditions Exist If Absolute Purchasing Power

question 6

Multiple Choice

Which of the following conditions exist if absolute purchasing power parity exists?
I.the goods are identical
II.the goods have equal economic values
III.transaction costs are equal to zero
IV.there are no trade barriers

• A)I and III only
• B)II and IV only
• C)I, III, and IV only
• D)I, II, and III only
• E)I, II, III, and IV

---

Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage, charged by lenders to borrowers.

Credit Cards

Financial tools issued by banks that allow users to borrow funds within an agreed limit for purchases or cash advances.

APR

Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other charges, expressed as a yearly rate.

Finance Charges

The total cost of borrowing, including interest and any other charges assessed by the creditor.