Which of the following is not a feature of the relative purchasing power parity theory?

Question

Quizplus · Accepted Answer

Option C describes a feature of the absolute purchasing power parity theory, not the relative purchasing power parity theory. The relative theory compares the changes in prices of goods between two currencies over time, whereas the absolute theory suggests that the same basket of goods should have the same price across different countries at any given time.

Which of the Following Is Not a Feature of the Relative