A less extreme version of the PPP theory state that given _____________ the price of a "basket of goods" should be roughly equivalent in each country.

Question

Quizplus · Accepted Answer

The less extreme version of PPP theory assumes that the markets are relatively efficient, meaning that prices adjust quickly to changes in supply and demand factors. Therefore, the price of a basket of goods should be roughly equivalent in each country, taking into account the exchange rate.

A Less Extreme Version of the PPP Theory State That