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1. A basket of goods costs $3,725 in the U.S. Exact same goods basket costs 3,136 in Europe. The exchange rate is .8725/$ A. What

1. A basket of goods costs $3,725 in the U.S. Exact same goods basket costs 3,136 in Europe. The exchange rate is .8725/$ A. What is the over/undervaluation of the $? B. What is the over/undervaluation of the ?

A. What is the over/undervaluation of the $? Show work

B. What is the over/undervaluation of the ? Show work

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