Question

ppp theory is based on the_
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Answer 1

Explanation:

Absolute purchasing power parity (APPP) is the basic PPP theory, which states that once two currencies have been exchanged, a basket of goods should have the same value. Usually, the theory is based on converting other world currencies into the US dollar.

Answer 2

Answer:

The basis for PPP is the "law of one price". In the absence of transportation and other transaction costs, competitive markets will equalize the price of an identical good in two countries when the prices are expressed in the same currency.