Table 31-2

-Refer to Table 31-2.For which country(ies)in the table does purchasing-power parity hold?
A) Bolivia and Japan
B) Bolivia and Morocco
C) Japan and Morocco
D) Norway and Thailand

Question

Table 31-2
 
-Refer to Table 31-2.For which country(ies)in the table does purchasing-power parity hold?
A) Bolivia and Japan 
B) Bolivia and Morocco 
C) Japan and Morocco 
D) Norway and Thailand

Quizplus · Accepted Answer

Purchasing-power parity holds when the exchange rate between two currencies equalizes the purchasing power of each currency. In the table, the only country pairs that have approximately equal values in both currencies are Bolivia and Morocco. Therefore, the answer is B.

Table 31-2 -Refer to Table 31-2.For Which Country(ies)in the Table Does Purchasing-Power