Question: A principal reason that purchasing power parity does NOT hold exactly in practice isQuestion content area bottomPart 1 A . that consumers in different countries

A principal reason that purchasing power parity does NOT hold exactly in practice isQuestion content area bottomPart 1A.that consumers in different countries have different preferences.B.that it is a short-run theory.C.the existence of non-traded goods.D.costs of production are not the same in all countries.E.that foreign and domestic assets are not perfect substitutes.

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