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Assume USD / MXN 1 8 in nominal currency exchange rate terms. A Toyota Forerunner costs $ 5 6 , 0 0 0 in the
Assume USDMXN in nominal currency exchange rate terms. A Toyota Forerunner costs $ in the US The same model of the Forerunner costs Pesos in Mexico. Based on the real price of the same vehicle in both countries, what is the real currency exchange rate between the US dollar and the Mexican Peso expressed as USDMXN Furthermore, based on this scenario, is the USD considered to be over or undervalued?
A
The USD is considered to be undervalued in this case.
B
The USD is considered to be overvalued in this case.
C
The USD is considered to be overvalued in this case.
D
The USD is considered to be undervalued in this case.
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