Which of the following conditions must exist for absolute purchasing power parity to hold?
I. The goods are identical
II. The goods have equal economic values
III. Transaction costs are equal to zero
IV. There are no trade barriers
A) I and III only
B) II and IV only
C) I, III, and IV only
D) I, II, and III only
E) I, II, III, and IV
Correct Answer:
Verified
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