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1 You are given the following informatiu Nominal effective AUD/USD exchange rate index at end of 2019 98

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1 You are given the following informatiu Nominal effective AUD/USD exchange rate index at end of 2019 98.15 (based on 100.00 at end of 1999) Australian CPI at end of 2019(based on 100 at end of 1999) 100 US CPI at end of 2019 (based on 100 at end of 1999) 100 Calculate the real effective AUD/USD exchange rate index at end of 2019. 91.64 89.33 88.13 98.15

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Assume the price of a Big Mac in the U.S. is $7.99 and the price in Turkey is 39 Turkish Lira (TRY). Thus, according to PPP and the Law of One Price, at the current exchange rate the TRY is: Lütfen birini seçin: a. undervalued b. Insufficient information to answer this question c. overvalued d. correctly valued