NO.PZ2022122601000035
问题如下：
Fap is a small country whose currency is the Fip. Three years ago, the exchange rate was considered to be reflecting purchasing power parity (PPP). Since then, the country’s inflation has exceeded inflation in the other countries by about 5% per annum. The Fip exchange rate, however, remained broadly unchanged.
What would you have expected the Fip exchange rate to show if PPP prevailed? Are Fips over or undervalued, according to PPP?
选项：
解释：
According to PPP, to offset the effect of the higher inflation in Fap, the Fip should have depreciated against the other currencies by approximately the difference between Fap inflation and that in the other countries.
According to PPP, Fip is overvalued.
中文解析：
根据购买力平价，为了抵消Fap中较高的通货膨胀的影响，Fap对其他货币的贬值幅度应该与Fap与其他国家的通货膨胀率之差大致相当。
根据购买力平价，Fip被高估了。
Fips should depreciate by 5% against other countries' currency.
If PPP prevailed, the change in the exchange rate should equal to the difference in inflation.
Because Fip's inflation rate is 5% more than other countries' inflation rate, the difference is 5% and thus Fips should depreciate by 5%.
According to the question, Fip's exchange rate is now unchanged, so it is overvalued.