"A commodity costs the same regardless of what currency is used to purchase it." This is a statement of:

Question

Quizplus · Accepted Answer

This statement refers to Absolute Purchasing Power Parity (APPP), which states that the exchange rate between two currencies should equal the ratio of the two countries' price levels for a basket of goods and services. In other words, if a commodity costs the same in two countries, then the exchange rate should reflect that, regardless of the currencies being used. The other choices do not accurately describe this statement.

"A Commodity Costs the Same Regardless of What Currency Is