a) Why is it believed that official exchange rates give misleading results? Hint: Discuss at least two of the limitations. (b) Describe two main criticisms of the World Bank’s use of PPP in making inter-country comparisons
a) Why is it believed that official exchange rates give misleading results? Hint: Discuss at least two of the limitations. (b) Describe two main criticisms of the World Bank’s use of PPP in making inter-country comparisons
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter21: Economic Development
Section: Chapter Questions
Problem 8QFR
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- Purchasing Power Parity (PPP) is often used instead of official exchange rates in making inter-country comparisons of per capita income.
(a) Why is it believed that official exchange rates give misleading results? Hint: Discuss at least two of the limitations.
(b) Describe two main criticisms of the World Bank’s use of PPP in making inter-country comparisons
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