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Reported Question / Answer
Q.) Many times we read about ‘PPP’ in economic literature. What PPP is ? It is a concept which—
1)
tells us that exchange rates between currencies are in equilibrium when their purchasing power is the same in both the countries
2)
tells us that exchange rates between currencies are in equilibrium when their purchasing power is different in both the countries
3)
PPP means t he current Exchange Rate of a currency against US $
4)
a measure of income inequality in developing countries
5)
None of these
Answer :
1
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