The PPP Theory Fails in Reality for All of the Following

question 50

Multiple Choice

The PPP theory fails in reality for all of the following reasons EXCEPT

• A) transport costs.
• B) monopolistic or oligopolistic practices in goods markets.
• C) the inflation data reported in different countries are based on different commodity baskets.
• D) restrictions on trade.
• E) inflation rates are unrelated to money supply growth.

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