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 ...

Using 1975 as the base year the nominal exchange rate of 1 pnut corresponding to the ratio of U ...

in 1975, the price level for the united states was 100, the price level for pugelovia was

Question:

in 1975, the price level for the united states was 100, the price level for pugelovia was also 100, and in the 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 be in 2008? If the actual dollar-pnut is $1/pnut in 2008, is the overvalued or undervalued relative ppp?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...