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The implied (equilibrium) PPP rate of exchange of the Canadian dollar per U.S. dollar is C$.9913/$ according to the Big Mac Index. The current exchange
The implied (equilibrium) PPP rate of exchange of the Canadian dollar per U.S. dollar is C$.9913/$ according to the Big Mac Index. The current exchange rate is C$1.2785/$. Thus, according to PPP and the Law of One Price, at the current exchange rate the U.S. dollar is None of the answers is correct O overvalued by 22.46% O overvalued by 28.97% O undervalued by 22.46 undervalued by 28.97%
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