The model of purchasing power parity is the only way to determine whether a country's currency is undervalued or overvalued.

Question

Quizplus · Accepted Answer

While the model of purchasing power parity is one way to assess a country's currency value, there are other factors such as supply and demand, economic growth, political stability, and interest rates that can also impact the value of a currency. Therefore, relying solely on PPP to determine a currency's value may not provide a complete and accurate picture.

The Model of Purchasing Power Parity Is the Only Way