Answer:
False
Explanation:
Given that,
Market basket of goods cost in United states = $100
Market basket of goods cost in France = 70 euros
Purchasing power parity is calculated as follows:
= (Cost of basket of goods in Euros) ÷ (Cost of same basket of goods in dollars)
= 70 ÷ 100
= 0.7 euro per dollar
Therefore, the statement is false.
