3,4

QUESTION 3 PPP fails in reality for all the following reasons except what? O A. Transportation costs OB. Trade barriers OC. Monopolistic or oligopolistic competition in goods markets D. Differences in inflation QUESTION 4 cheng, Sen... P Homework and Te... P 202 Homework an Remaining Time: 58 minutes, 39 seconds. Question Completion Status: B. Trade barriers C. Monopolistic or oligopolistic competition in goods markets o D Differences in inflation QUESTION 4 Suppose a basket of goods costs $50 in the U.S. and 20 in France. What exchange rate, in dollars per euro, would be consistent with purchasing power parity? O $2 $0.40 O $1.50 $2.50 QUESTION 5 In the long run, with variable real exchange rates, If American goods become less attractive relative to European goods, the dollar will experience a real and a nominal