Assume the price level in the U.S. is 180, the price level in china is 100, and
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Question:
Assume the price level in the U.S. is 180, the price level in china is 100, and the nominal exchange rate is 6 yuan per dollar. according to purchasing power parity, the renminbi is
a. undervalued
b. overvalued
c. correctly valued
d. greater than zero
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