Question
I need help with economics. In the online lecture, you have seen the examples of calculating the real exchange rate between the US and Japanese
I need help with economics.
In the online lecture, you have seen the examples of calculating the real exchange rate between the US and Japanese goods (using the Big Mac as an example) and between US and Mexican goods (using a latte as an example). What isanother good (or service) that is relatively similar in several parts of the world?Find the prices of this good or service, determine the relative exchange rates (in terms of the number of units of the foreign good per one unit of the domestic good), and state whether this implies that the foreign currency is undervalued or overvalued.
Please be specific with the answer so I can really grasp the information.
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