Reading 19: Foreign Exchange Parity Relations - LOS L ～ Q likely, failure, Foreign, absolute, following

mayanfang1

Q11. Which of the following is least likely a valid reason for the failure of absolute PPP?

A)   forward rates are unreliable and thin.

B)   differences in taxes, labor, and transportation costs between countries.

C)   consumers do not have the same basket of goods and services.

Q12. Muller observes that the $/

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