Author Question: Purchasing power parity may not hold in practice due to all of the following except A) ... (Read 62 times)

Pineappleeh · **on:** Jun 30, 2018

Purchasing power parity may not hold in practice due to all of the following except

A) transportation costs.
B) cross-country differences in environmental regulations.
C) trade barriers like tariffs and quotas.
D) the existence of non-traded goods.

Question 2

Prices are regarded as sticky in ________.

A) new Keynesian and traditional Keynesian theory
B) real business cycle and new Keynesian theory
C) real business cycle and traditional Keynesian theory
D) traditional Keynesian, new Keynesian and real business cycle theory