The Concept of Purchasing Power Parity Refers to

The concept of purchasing power parity refers to

A) the decrease in the market value of a currency relative to another currency.
B) consumers' preferences for imports over exports or goods produced at home.
C) the exchange rate between currencies that equalizes the purchasing power of each currency by eliminating the differences in price levels in each economy.
D) the exchange rate between currencies that equalizes the purchasing power of each currency by increasing the differences in price levels in each economy.