Purchasing-power parity (PPP) refers to__________
A. the concept that the same goods should sell for the same price across countries after exchange rates are taken into account
B. the concept that interest rates across countries will eventually be the same
C. the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries
D. the natural offsetting relationship provided by costs and revenues in similar market environments
Answer: Option A
Solution(By Examveda Team)
Purchasing-power parity (PPP) refers to the concept that the same goods should sell for the same price across countries after exchange rates are taken into account. Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a "basket of goods" approach.A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
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