Though useful, purchasing power parity does not completely explain long-run movements in exchange rates due to
A) some goods being nontradeable.
B) changes in the real exchange rate.
C) differentiated products.
D) all of the above.
D
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If a good has unitary price elasticity of demand, then the absolute value of the percentage change in
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The consumption schedule is such that:
A. both the APC and the MPC increase as income rises. B. the APC is constant and the MPC declines as income rises. C. the MPC is constant and the APC declines as income rises. D. the MPC and the APC must be equal at all levels of income.