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If the price of a Big Mac is $2.63 in the United States and 2.53 Euros in Europe and the spot exchange rate is $1.17

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If the price of a Big Mac is $2.63 in the United States and 2.53 Euros in Europe and the spot exchange rate is $1.17 = 1.00 Euro a. So, is Euro over or undervalued against $ (5 Pts. ) b. and by what percentage? (5 Pts.)

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