Transactions costs prevent purchasing power parity from holding because:
A. they make creating exchanges too costly in some places.
B. they include the expense of transporting the goods to be sold in another country.
C. the price of a good sold in another country must include the cost of getting it there, which can be high and cause a large price differential.
D. All of these statements are true.
Answer: D
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.