1. USD/AUS 75.30 in nominal currency exchange rate terms. The same Dell computer costs $1,700.00 in the U.S. and 103,000.00 Argentine Pesos in Argentina. Please select the best answer choice below.

   	I.	The Argentine Peso is undervalued and I am better off buying the Dell computer in Argentina.
   	II.	The Argentine Peso is overvalued and I am better off buying the Dell computer in Argentina.
   	III.	The Argentine Peso is overvalued and I am better off buying the Dell computer in the U.S.
   	IV.	The Argentine Peso is undervalued and I am better off buying the Dell computer in the U.S.

10 points

QUESTION 10

1. CLP/USD .0013 in nominal currency exchange rate terms. A Big Mac costs $3.99 in the U.S. How much would I expect to pay for the same Big Mac in Chile?

   	I.	3.99 Chilean Pesos
   	II.	3,069.23 Chilean Pesos
   	III.	.01 Chilean Pesos
   	IV.	800 Chilean Pesos