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A Parity Ratio of 1

Question 30

Multiple Choice

A parity ratio of 1.2 in year A means that prices


A) received in year A could buy 120 percent as much as prices received in the base period.
B) received in the base period could buy 120 percent as much as prices received in year A.
C) received in year A had risen by 120 percent over the prices received in the base period.
D) paid by farmers in year A had risen by 120 percent over the prices paid in the base period.

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