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According to ppp what should the dollar

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in 1975, the price level for the united states was 100, the price level for pugelovia was also 100, and in the foreign exchange market one pugelovian pnut was equal to $1. In 2008, the U.S. price level had risen to 260, and the pugelovian price level had risen to 390. According to ppp what should the dollar-pnut exchange rate be in 2008? If the actual dollar-pnut exchange rate is $1/pnut in 2008, is the overvalued or undervalued relative ppp?

Reference no: EM13943712

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