Purchasing power parity assumes
A) that foreign and domestic assets are perfect substitutes.
B) similar prices for inputs.
C) no transportation costs and no trade barriers.
D) similar real wage rates.
E) no inflationary pressures.
Correct Answer:
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A)mimics policy
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Q41: Under purely flexible exchange rates
A)there is no
Q42: A principal reason that purchasing power parity
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Q45: The International Monetary Fund plays the key
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