Which of the Following Statements Is TRUE Regarding the Relationship

Multiple Choice

Which of the following statements is TRUE regarding the relationship between Gross National Income (GNI) and purchasing power parity (PPP) ?

A) a nation with a low GNI will almost always have an even weaker PPP
B) GNI is inversely proportional to the PPP
C) the higher the GNI, the higher the PPP
D) a high GNI may not translate into strong PPP due to the enormous cost difference between goods in two different nations
E) GNI will always be higher in developed nations, but PPP will always be stronger in developing nations