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PPP holds better for ________ countries. ?

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PPP holds better for ________ countries.

a. low-inflation

b. rich

c. poor

D. high-inflation

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  1. High-inflation,

    Why; because PPP takes into account the relative cost of living and the inflation rates of different countries, rather than just a nominal gross domestic product (GDP) comparison.


  2. D. high-inflation
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