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An iPhone 12 Max (128GB) is priced at IDR 14.5 million in Indonesia. In Denver, the price of a similar phone is USD 1,000. The

An iPhone 12 Max (128GB) is priced at IDR 14.5 million in Indonesia. In Denver, the price of a similar phone is USD 1,000. The spot rate between the Indonesian rupiah and the USD is IDR 13,000/USD. Using the PPP, calculate the amount of IDRs overvaluation(+)/undervaluation(-).

[Set up the exchange rate is IDR/USD]

Group of answer choices

+11.54%

+2.885%

-2.885%

-2.80%

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