Question

What is Purchasing Power Parity (PPP)?

a.

The exchange rate between two countries

b.

The price level in a country

c.

The purchasing capacity of one unit of currency

d.

The balance of payments between countries

Answer: (c).The purchasing capacity of one unit of currency Explanation:Purchasing Power Parity (PPP) is defined as the purchasing capacity of one unit of currency, indicating the amount of goods and services that can be purchased with one unit of currency.

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Q. What is Purchasing Power Parity (PPP)?

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