A less extreme version of the PPP theory states that given ______________,that is,markets in which few impediments to international trade and investment exist-the price of a "basket of goods" should be roughly equivalent in each country.

Question

Quizplus · Accepted Answer

The less extreme version of the PPP theory assumes that there are relatively efficient markets with few impediments to international trade and investment. In such markets, the price of a "basket of goods" should be roughly equivalent in each country. Therefore, option A, which refers to relatively efficient markets, is the best choice. The other options are either inaccurate or incomplete.

A Less Extreme Version of the PPP Theory States That