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To Facilitate an International Comparison of Standards of Living, the World

Question 14

Multiple Choice

To facilitate an international comparison of standards of living, the World Bank


A) uses a weighted index of exchange rates to convert local currency.
B) converts currencies to dollars on the basis of purchasing power.
C) assigns more weight to agricultural production than to manufacturing since most low-income countries tend to be agrarian economies.
D) converts currencies to U.S. dollars using an exchange rate, averaged over a three-year period in order to smooth out the effects of currency fluctuations,

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