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The Tendency of the Prices of Identical Baskets of Goods

Question 110

Multiple Choice

The tendency of the prices of identical baskets of goods across countries to converge:


A) ​Is weaker to the extent the countries compared have substantial tariffs on imported goods.
B) ​Is weaker to the extent the countries compared have limiting quotas on imported goods.
C) ​Is weaker for goods and services not traded internationally.
D) ​All of the above are true.

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