CLP25/USD CLPOO/USD D Question 25 One year ago the spot exchange rate between the Chilean peso and the U.S. dollar was CLP500.00/USD. During the past year, the Chilean peso fell 25% in value against the dollar. During this same 12-month period, prices in the United States remained stable while Chilean prices rose 22%. Is the Chilean peso overvalued or undervalued in real terms? The Chilean peso is overvalued in real terms because the currency fell 25% while Chillean inflation was only 22% and the US had no inflation The Chilean peso is undervalued in real terms because Chile had more inflation than the U.S. The Chilean peso is undervalued in real terms because the currency fell 25% while Chilean inflation was only 22% and the US had no interion The Chilean peso is overvalued in real terms because Chile had more inflation than the U.S. Question 26