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Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to

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Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to the going exchange rate, one USD is equal to 100 yen and 8 RMB. Based on PPP, the Japanese Yen is and the RMB is against USD undervalued; undervalued: undervalued: overvalued: overvalued: undervalued overvalued; overvalued

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