Foreıgn Trade Deneme Sınavı Sorusu #1405678

Which of the followings is the principle on which Purchasing Power Parity (PPP) Theory is based?

Equilibrium level of exchange rate.

Ceteris paribus.

The real output (GDP) level of a country.

Relative price level.

The law of one price.

Yanıt Açıklaması:

Purchasing Power Parity (PPP) Theory is based on a principle known as “law of one price”. This law claims that the entirely homogeneous (identical) goods should be sold with the same price even in different markets. Therefore, the correct option is E.

PAYLAŞ:

SORUNUN CEVABI: E

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