Question
USD/RUB 75.70 in nominal currency exchange rate terms. The same Dell computer costs $1,350.00 in the U.S. and 102,900.00 Rubles in Russia, Please select the
USD/RUB 75.70 in nominal currency exchange rate terms. The same Dell computer costs $1,350.00 in the U.S. and 102,900.00 Rubles in Russia, Please select the best answer choice below.
I. | I would expect to pay $1,359.31 for the Dell in the U.S. The Ruble is undervalued and I am better off buying the Dell in the U.S. | |
II. | I would expect to pay $1,359.31 for the Dell in the U.S. The Ruble is overrvalued and I am better off buying the Dell in the U.S. | |
III. | I would expect to pay $1,350 for the Dell in the U.S. The Ruble is undervalued and I am better off buying the Dell in the U.S. | |
IV. | I would expect to pay $1,359.31 for the Dell in the U.S. The Ruble is undervalued and I am better off buying the Dell in Russia. |
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