Consider the following statements with respect to Purchasing power parity (PPP):

1. It is a method of calculating the real value of a currency that may be different from the market exchange rate of the currency.

2. Using this method economies may be studied comparatively in a common currency.

3. China is currently the largest economy in the world followed by the USA and India in terms of Gross domestic product(GDP) calculated in PPP

How many of the above statements are correct?

1
Only one
2
Only two
3
All three
4
None

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