Which of the following can explain why purchasing power parity doesn't hold exactly in reality?

Question

Quizplus · Accepted Answer

Transaction costs are the costs associated with buying and selling goods and services. These costs can include things like transportation costs, tariffs, and taxes. When transaction costs are high, it can make it difficult for goods and services to be traded between countries, which can lead to deviations from purchasing power parity.

Which of the Following Can Explain Why Purchasing Power Parity