The theory of purchasing power parity assumes that.

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26-04-2022
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The theory of purchasing power parity assumes that.

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priyankapandeyVT priyankapandeyVT · Answer 1 · 2022-05-05T08:40:31+02:00

PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

What is purchasing power parity?

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

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