The idea that the value of money is equal across countries is known as

Question

Quizplus · Accepted Answer

Purchasing power parity theory suggests that the exchange rate between two currencies will adjust to ensure that a basket of goods has the same value in both countries. In other words, goods should cost the same amount in both countries after adjusting for exchange rates. Therefore, purchasing power parity implies that the value of money is equal across countries.

The Idea That the Value of Money Is Equal Across