Purchasing power parity is ________.
A) the total income received by all sectors of an economy within a nation
B) the value of goods and services that can be purchased with one unit of a country's currency
C) an adjustment for prices that reflects the amount of goods that consumers can buy in their home country, using their own currency and consistent with their own standard of living
D) the exchange rate in the international currency market

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is an economic theory that allows the comparison of the purchasing power of various world currencies to one another. It adjusts for price level differences across countries, reflecting the amount of goods consumers can buy in their home country with their own currency.

Purchasing Power Parity Is ________