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Vsevolod [243]
3 years ago
8

Suppose you are comparing the income per capita in the United States and Ghana. You try two approaches. In the first​ approach,

you convert the Ghana values into U.S. dollars using the current exchange rate between the U.S. dollar and the Ghanaian cedi. In the second​ approach, you also convert both values to U.S. dollars using the purchasing power​ parity-adjusted exchange rate. Which approach is likely to give you a more accurate picture of the living standards in both​ countries?
Social Studies
1 answer:
d1i1m1o1n [39]3 years ago
6 0

Answer:The second approach, because it takes into account the relative costs for each country.

Explanation:

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