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If the Exchange Rate Were 100 Yen Equals One Dollar

Question 155

Multiple Choice

If the exchange rate were 100 yen equals one dollar, but purchasing power parity indicates 90 yen for a dollar, then we would say the dollar is:

A) undervalued.
B) overvalued.
C) below parity.
D) inflationary.
E) below central bank parity.

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