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Purchasing power parity does not hold for single products, it is meaningful only when applied to a basket of goods

Respuesta :

True. Purchasing power parity does not hold for single products, it is meaningful only when applied to a basket of goods. 

Purchasing power 
parity also known as PPP is defined as an economic theory that compares different countries' currencies through a "basket of goods" approach. It's sad that 2 or more countries are equal when a basket of goods is priced the same relative to exchange rate in both countries.