The idea that commodities have the same value no matter where they are purchased or what currency is used is known as _____ parity.

Question

Quizplus · Accepted Answer

Absolute purchasing power parity states that the price of a good or service in one country should be the same as the price of the same good or service in another country after accounting for exchange rates. This suggests that the value of a currency should reflect its purchasing power relative to other currencies.

The Idea That Commodities Have the Same Value No Matter