The problem with using foreign exchange rates to convert one country's GDP into dollars is that
A) the values of currencies are not comparable.
B) exchange rates do not reflect differences in inflation rates.
C) not all goods and services are sold on world markets.
D) the dollar has been losing value over the last twenty years.

Question

Quizplus · Accepted Answer

Exchange rates may not accurately reflect the domestic purchasing power of a currency because not all goods and services are traded internationally, leading to potential distortions in GDP comparisons.

The Problem with Using Foreign Exchange Rates to Convert One