If a market basket of goods cost $100 in 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 in the US and 70 euros in France, then the PPP exchange rate would be $.70/euro.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

The PPP exchange rate is calculated by dividing the cost of the basket in the US by the cost in France, which would be $100/70 euros = $1.43/euro, not $0.70/euro.

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