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Implied ppp rate of exchange of turkish lira?

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Reference no: EM132532022

Assume the implied PPP rate of exchange of Turkish Lira? (TRY) per U.S. dollar is 4.50 according to the Big Mac Index.? Further, assume the current exchange rate is? 6.80TRY/$1. Thus, according to PPP and the Law of One? Price, at the current exchange rate the TRY? is:

A. undervalued

B. correctly valued

C. overvalued

D. Insufficient information to answer this question

Reference no: EM132532022

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