Using current exchange rates,the U.S.standard of living is ranked
A)higher than it would be under the purchasing power parity method.
B)lower than it would be under the purchasing power parity method.
C)number one in the world.
D)among the lowest in the world.
E) none of the above

Question

Quizplus · Accepted Answer

The U.S. standard of living is ranked lower than it would be under the purchasing power parity method because the exchange rate method does not take into account the differences in the cost of living between countries. Purchasing power parity adjusts for these differences and provides a more accurate measure of relative standards of living.

Using Current Exchange Rates,the U