1. A basket of goods costs $4,089 in the U.S. Exact same goods basket costs 3,350 in Europe. The exchange rate is $1.265/

1. What is the over/undervaluation of the ? (percent)
2. What is the over/undervaluation of the $? (percent)

1. Regarding Q1, how much cheaper/more expensive is the European basket than the cost of the U.S. basket? (in percentage terms)

2. Regarding Q1, how much cheaper/more expensive is the U.S. basket than the European basket? (in percentage terms)