How many percent USD overvalued against the EUR

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Problem 1: A bundle of consumer goods in the Eurozone cost EUR 4.00 and the same bundle of consumer goods in the US costs USD 5.40. Currently the spot rate is XUSD/EUR =1.18. According to APPP, by how many percent is the USD overvalued/undervalued against the EUR?

Reference no: EM132476604

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