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The real exchange rate between Mexican Peso (MXN) and US Dollar (USD) is q(MXN/USD) = 1.08. According to PPP, __________________ Select one: a. MXN is

The real exchange rate between Mexican Peso (MXN) and US Dollar (USD) is q(MXN/USD) = 1.08. According to PPP, __________________

Select one:

a. MXN is over-valued by 8%.

b. MXN is under-valued by 8%.

c. USD is over-valued by 8%.

d. USD is under-valued by 8%.

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