3. Use the table that follows to answer this question. Treat the country listed as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is Pus= $190. Check to see whether the Purchasing Power Parity (PPP) holds for each of the countries listed, and determine whether the FX currency is overvalued or undervalued. Also assume that PPP holds in the long run, so that any deviation:s from PPP would be expected to disappear. Then determine whether we should expect a real appreciation or real depreciation for each country (relative to the United States) in the long run For the answer, create a table similar to the one shown and fill in the blank cells. (Hint: Read slides #15-18 for Topic 9) s Fx currency overvalued or undervalued? By how much (in Price of Price of Real Does Country (currency measured in FX units) Is FX currency expected to have a real appreciation or depreciation? Per $, market market exchange PPP EFxs basket (in basket rate, hold? FX/$ FX) in US$ us/cOUTR (yeso) percentages)? Brazil (real) India (rupee) Mexico (peso) South Africa (rand) Zimbabwe (ZS) 880 12,000 1,800 800 101,3474,000,000 4.07 68.51 18.89 15.78 3. Use the table that follows to answer this question. Treat the country listed as the home country, and treat the United States as the foreign country. Suppose the cost of the market basket in the United States is Pus= $190. Check to see whether the Purchasing Power Parity (PPP) holds for each of the countries listed, and determine whether the FX currency is overvalued or undervalued. Also assume that PPP holds in the long run, so that any deviation:s from PPP would be expected to disappear. Then determine whether we should expect a real appreciation or real depreciation for each country (relative to the United States) in the long run For the answer, create a table similar to the one shown and fill in the blank cells. (Hint: Read slides #15-18 for Topic 9) s Fx currency overvalued or undervalued? By how much (in Price of Price of Real Does Country (currency measured in FX units) Is FX currency expected to have a real appreciation or depreciation? Per $, market market exchange PPP EFxs basket (in basket rate, hold? FX/$ FX) in US$ us/cOUTR (yeso) percentages)? Brazil (real) India (rupee) Mexico (peso) South Africa (rand) Zimbabwe (ZS) 880 12,000 1,800 800 101,3474,000,000 4.07 68.51 18.89 15.78