In general, if the trade costs are higher, the existence of PPP and the LOOP are:
A) more likely.
B) impossible.
C) less likely.
D) irrelevant.

Name: In general, if the trade costs are higher, the existence of PPP and the LOOP are: A) more likely. B) impossible. C) less likely. D) irrelevant.
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Question

Quizplus · Accepted Answer

When trade costs are high, it becomes more difficult for goods to move between countries, resulting in differences in prices and making it less likely for PPP and the LOOP to exist.

In General, If the Trade Costs Are Higher, the Existence