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The implied PPP rate of exchange of Mexican pesos per U.S. dollar is 8.58 according , and the current exchange rate is $/Ps=11.80. Thus, according

The implied PPP rate of exchange of Mexican pesos per U.S. dollar is 8.58 according , and the current exchange rate is $/Ps=11.80. Thus, according to PPP and the Law of One Price, at the current exchange rate the peso is (overvalued/undervalued) by .%

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