If a market basket of goods cost $100 is the US and 70 euros in France,then the PPP exchange rate would be $.70/euro.

Name: If a market basket of goods cost $100 is the US and 70 euros in France,then the PPP exchange rate would be $.70/euro.
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Quizplus · Accepted Answer

The PPP exchange rate is based on the relative prices of goods and services in two countries, not just one market basket. Therefore, we need more information to determine the PPP exchange rate between the US and France.

If a Market Basket of Goods Cost $100 Is the US