3,4 QUESTION 3 PPP fails in reality for all the following reasons except what? O A....

Question

Question

3,4

Answer 1

Answer #1

question 3) Answer

Option B is correct answer that is trade barriers.

ppp fails in reality for all the following reasons they are

1)transportation cost

2)Monopolistic or oligipolistic competition in goods markets

3)differences in inflation.

So Option B is correct.

Question 4)

Exchange rate in dollars per euro = Goods cost in US in dollars / Goods cost in france = $50 / 20 euros = $ 2.5 per Euro(€)

Option D is correct.

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Answer 2

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