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Which of the Following Calculates the Cost of Purchasing a Specific

Question 112

Multiple Choice

Which of the following calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency so they may be more accurately compared?


A) The consumer price parity (CPP) method.
B) The purchasing power parity (PPP) method.
C) The GDP deflator exchange (GDPDE) method.
D) The inflation conversion factor (ICF) method.

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