Question: A consumption bundle costs CAD 16,000. The same consumption bundle costs 11,000 euros in Germany. The market exchange rate is CAD 1.35 per euro. Is

A consumption bundle costs CAD 16,000. The same consumption bundle costs 11,000 euros in Germany. The market exchange rate is CAD 1.35 per euro. Is the euro overvalued or undervalued relative to the CAD?

UnderValued

OverValued

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