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The Pesos implied Purchasing Power Parity exchange rate per U.S. dollar is 11.80. The present exchange rate is Peso 10.60/$. The Peso is therefore is
The Pesos implied Purchasing Power Parity exchange rate per U.S. dollar is 11.80. The present exchange rate is Peso 10.60/$. The Peso is therefore is (overvalued or undervalued) at the current exchange rate, according to Purchasing Power Parity and the Rule of 1 Price, by what %?
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