3628EconomicsMedium
The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where?
Aboth exchange rate are converted into Big Mac PPP formula
Bboth exchange rates are measured s the domestic currency price of the US-dollar
Cboth exchange rate are pegged
Dboth exchange rates are not converted into international dollars
Correct answer
B. both exchange rates are measured s the domestic currency price of the US-dollar
Explanation
The correct answer is both exchange rates are measured s the domestic currency price of the US-dollar.