Which of the following is not a reason why PPP often fails to hold in real world data?

Question

Quizplus · Accepted Answer

The Purchasing Power Parity (PPP) theory often fails to hold in real-world data due to various factors such as transport costs, different taxes, and trade barriers, which can all affect the prices of goods and services between countries. However, a lack of traders wishing to exploit arbitrage opportunities is not typically a reason for PPP not holding, as there are usually traders or investors looking to take advantage of price differences between markets.

Which of the Following Is Not a Reason Why PPP