goldenxivbes3047 goldenxivbes3047

06-06-2023
Business

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If the price of a product in the US is $14.85, and the same product is euro 12.70 in Portugal, and the current spot exchange rate is euro .875 per dollar, then one can conclude that in terms of purchasing power parity (PPP):
The US is undervalued
purchasing power parity holds
the euro is overvalued
the euro is undervalued

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