Among the Reasons That Purchasing Power Parity (PPP) Does Not

Multiple Choice

Among the reasons that purchasing power parity (PPP) does not consistently occur are:

A) exchange rates are affected by interest rate differentials.
B) exchange rates are affected by national income differentials and government controls.
C) supply and demand may not adjust if no substitutable goods are available.
D) All of these are reasons that PPP does not consistently occur.