If Relative Purchasing Power Between the United States and Argentina

question 194

Multiple Choice

If relative purchasing power between the United States and Argentina is 3.22 pesos per dollar,under which circumstances would we say that the dollar is "overvalued"?

• A)if the actual exchange rate between the dollar and the Argentinean peso is 3.22 pesos per dollar
• B)if the actual exchange rate between the dollar and the Argentinean peso is 4 pesos per dollar
• C)if the actual exchange rate between the dollar and the Argentinean peso is 0.22 pesos per dollar
• D)if the actual exchange rate between the dollar and the Argentinean peso is 3 pesos per dollar

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