Purchasing power parity implies that a unit of any given currency should be able to buy the same quantity of goods and services in any country.

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is a theory that suggests that the exchange rates between currencies should adjust to equalize the price of a basket of goods and services between two countries. This means that a unit of any given currency should be able to buy the same quantity of goods and services in any country, regardless of the exchange rate. Therefore, the statement is true.

Purchasing Power Parity Implies That a Unit of Any Given