Multiple Choice
Which of the following is not a major problem associated with using a price index to measure PPP?
A) The indexes include nontradable goods.
B) Different countries use different market weights in calculating the indexes.
C) Trade barriers between countries inhibit the free flow of goods between countries.
D) All of the above are major problems associated with using a price index to measure PPP.
E) None of the above are major problems associated with using a price index to measure PPP.
Correct Answer:

Verified
Correct Answer:
Verified
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