If the exchange rate from US dollars to Euros is $1= £0.92 which currency has more purchasing power?
In: Economics
It doesn’t work like that – the explicit rate between two currencies doesn’t tell you anything about anything, really. To illustrate, consider that $1 is also 100 cents. So you could say that 100c = £0.92. Now the number’s 100 times larger! Yet $1 and 100c have exactly the same purchasing power.
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