To calculate purchasing power parity, the figure is adjusted based on
A) the trading value of gold in the exchange market.
B) the median cost of living in the top five economic nations.
C) the status of the cost of living in the United States
D) average daily exchange rates in the selected nation.
E) limits set by each nation's government.

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is adjusted based on the cost of living in the United States as a reference point to compare the relative value of currencies and the cost of living between countries.

To Calculate Purchasing Power Parity, the Figure Is Adjusted Based