When a country's goods and services are expensive relative to other countries',we say that its currency is ________ in terms of purchasing power parity.

Question

Quizplus · Accepted Answer

When a country's goods and services are expensive relative to other countries, the demand for its exports decreases and the demand for imports increases. This leads to a surplus of the country's currency in the foreign exchange market, making it more expensive and overvalued in terms of purchasing power parity.

When a Country's Goods and Services Are Expensive Relative to Other