Question which of the following describe some limitations, Ask an Expert

Economics

Question: Which of the following describe some limitations of the purchasing-power-parity theory? Check all that apply.

- The theory does not apply well to globally tradable commodities such as oil and metals.

- The theory does not appear to apply well to non-tradable goods and personal services like haircuts.

- The theory suffers from the choice of an appropriate price index used in price calculations.

- The theory does not consider the impact of international capital movements.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92585181

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