Which of the following would not cause problems in calculating PPP?
A) differences in the calculation of the Producer Price Index across countries
B) barriers to trade
C) international differences in market structures
D) international differences in calculating interest rates
E) international differences in income

Question

Quizplus · Accepted Answer

Interest rates do not directly affect the calculation of Purchasing Power Parity (PPP), which focuses on the relative price levels of a basket of goods and services between countries.

Which of the Following Would Not Cause Problems in Calculating