The assumptions of Purchasing Power Parity Theory include:
A. No costs for converting one currency to another
B. No restrictions on the movement of capital between countries
C. No restrictions on the movement of commodities between countries
D. No transaction costs for buying and selling financial security
E. No transportation costs for transporting a commodity from one country to another.
Choose the most appropriate answer from the options given below:
1
A, B, and C only
2
B, D and C only
3
E, A, and C only
4
D, A, and E only