Suppose that on Monday, a Big Mac cost $3.00 in the United States and 320 Japanese yen in Japan. On Monday, the exchange rate was $1 = 90 yen. According to the purchasing power parity theory, the yen was __________ by approximately __________ percent

A) overvalued; 22
B) undervalued; 40
C) overvalued; 29
D) undervalued; 19
E) overvalued; 19


D

Economics

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