Purchasing power parity is criticized because it:
A. includes the trade in assets.
B. uses the wrong basket of goods to compute purchasing power parity exchange rates.
C. does not account for trade in assets.
D. does not apply when exchange rates are flexible.
Answer: C
Economics
You might also like to view...
It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year
A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0
Economics
Refer to Table 9-6. What is the value of $A in stage 1?
A) $100 B) $200 C) $600 D) $800
Economics