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MC Qu. 16 Which one of these must be true if absolute ... Which one of these must be true if absolute purchasing power parity
MC Qu. 16 Which one of these must be true if absolute ...
Which one of these must be true if absolute purchasing power parity is to absolutely hold?
The goods traded must have a feature unique to each individual market.
Forward rates must equal spot rates.
Transaction costs must be imposed on both ends of a trade.
There must be greater demand for the item in one area as compared to another area.
Customer preferences for an item must be identical across markets.
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