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3. According to the Big Mac Index, the implied PPP exchange rate is Mexican peso 8.50/$1 but the actual exchange rate is peso 10.80/$1. Thus,

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3. According to the Big Mac Index, the implied PPP exchange rate is Mexican peso 8.50/$1 but the actual exchange rate is peso 10.80/$1. Thus, at current exchange rates the peso appears to be by A) overvalued; approximately 21% B) overvalued; approximately 27% C) undervalued; approximately 21% D) undervalued; approximately 27%

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