The _____ suggests that given relatively efficient markets,the price of a "basket of goods" should be roughly equivalent in each country.
A)theory of efficient markets
B)law of one price
C)theory of price inflation
D)PPP theory

Question

Quizplus · Accepted Answer

The PPP (Purchasing Power Parity) theory suggests that in efficient markets, the price of a basket of goods should be equivalent across different countries when expressed in a common currency.

The _____ Suggests That Given Relatively Efficient Markets,the Price of a "Basket