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When Measuring Real Purchasing Power Parity (PPP) Between China and the United

Question 2

Multiple Choice

When measuring real purchasing power parity (PPP) between China and the United States, prices of goods measured in dollars at the exchange rate in both nations resulted in:


A) higher prices for goods in China compared with the United States.
B) lower prices for goods in China compared with the United States.
C) prices of goods that were roughly equal.
D) Chinese customers having higher incomes in terms of purchasing power.

Correct Answer:

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