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McDonald's granted a franchisee the right to operate in Sydney, Australia. The price of Big Mac is A$6.45. In Boston, the price of Big Mac
McDonald's granted a franchisee the right to operate in Sydney, Australia. The price of Big Mac is A$6.45. In Boston, the price of Big Mac is $5.30. The exchange rate between Australian dollars and U.S. dollars is A$1.25/$. According to purchasing power parity, is the Australian $ overvalued or undervalued?
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