A situation in which money buys the same amount of goods and services in different currencies is called

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is a theory that states that in the long run, exchange rates should adjust so that the same basket of goods and services in different currencies will have the same price. This means that one currency can buy the same quantity of goods as another currency. Therefore, choice B is the correct answer. The other options are not accurate definitions of a situation where money can buy the same amount of goods and services in different currencies.

A Situation in Which Money Buys the Same Amount of Goods