Empirical Evidence Shows That in the Short Run,purchasing Power Parity

question 72

Multiple Choice

Empirical evidence shows that in the short run,purchasing power parity ________,and in the long run,purchasing power parity ________.

• A)holds; does not hold
• B)holds; holds
• C)does not hold; holds
• D)does not hold; does not hold

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Definitions:

Contract Manufactures

Companies engaged in producing goods or components for other companies under a contract, rather than producing their own brand products.