All of the following items are needed to compute relative purchasing power parity EXCEPT ____.

Question

Quizplus · Accepted Answer

Benchmark tax rate is not necessary to compute relative purchasing power parity which compares the cost of goods and services between two countries, based on their respective currencies. The other three factors, the spot price of the currency, home country interest rate, and expected foreign country inflation rate, are needed to calculate relative purchasing power parity.

All of the Following Items Are Needed to Compute Relative