Question
Question content area top Part 1 Starbucks (Croatia). Starbucks opened its first store in Zagreb, Croatia, in October 2010. In Zagreb, the price of a
Question content area top
Part 1
Starbucks (Croatia).Starbucks opened its first store in Zagreb, Croatia, in October 2010. In Zagreb, the price of a tall vanilla latte is
25.73
Croatian kunas (kn or HRK). In New York City, the price of a tall vanilla latte is
$2.66.
The exchange rate between Croatian kunas and U.S. dollars is
kn5.6288=$1.
According to purchasing power parity, is the Croatian kuna overvalued or undervalued?
Question content area bottom
Part 1
The percentage of overvaluation or undervaluation is
enter your response here%.
(Round to two decimal places.)
Part 2
According to purchasing power parity, the Croatian kuna is (overvalued / underrvalued)
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