In the table below the local prices of a bottle of similar red wine in four different countries, known as X, Y, Z and USA, are given. The alphabet countries have currencies named the same as the country itself. The nominal exchange rates in USDs per for currency are also given. Using this data, indicate which of these three currencies are undervalued, and which are overvalued, relative to the USD. Show your work.v

I

Price of a bottle of Red Wine in Nominal Under oir S(USD/local currency) Over value Exchange Rate Countrythe local Currency 250 35 20 $10 $0.05 $0.25 $0.65 USA USDs