What does the term purchasing power parity (PPP) mean?
A) median income of a location or region for a time period
B) inflation rate of a country or region for a time point
C) equivalence of currency required to buy a common set of goods
D) conversion multiplier required to purchase a currency

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a "basket of goods" approach. According to PPP, two currencies are in equilibrium or have equal value when a basket of goods is priced the same in both countries, taking into account the exchange rates.

What Does the Term Purchasing Power Parity (PPP) Mean