(Ch. 3, prob.4) Use the table that follows to answer this question. Treat the country listed as the home country, and 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 PPP holds for each of the countries listed, and 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 (You may use a spreadsheet application such as Excel if you like.) Per S Price of U.S. Real Basket in FX Exchange (Pus times EFxs) Country (currency ErXS measured Price of Does Is FX Currency Is FX Market PP Overvalued or Currency Expected to Have Real Basket Hold? Undervalued? Rate in FX (in FX) qcoUNTRYUS (yeso) units) Appreciation or Depreciation? Brazil 4.07 520 (real) India 68.51 12,000 () exico 18.89 1,800 (peso) South 800 15.78 Africa (rand) Zimbabwe 101,347 4,000,000 (ZS) (Ch. 3, prob.4) Use the table that follows to answer this question. Treat the country listed as the home country, and 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 PPP holds for each of the countries listed, and 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 (You may use a spreadsheet application such as Excel if you like.) Per S Price of U.S. Real Basket in FX Exchange (Pus times EFxs) Country (currency ErXS measured Price of Does Is FX Currency Is FX Market PP Overvalued or Currency Expected to Have Real Basket Hold? Undervalued? Rate in FX (in FX) qcoUNTRYUS (yeso) units) Appreciation or Depreciation? Brazil 4.07 520 (real) India 68.51 12,000 () exico 18.89 1,800 (peso) South 800 15.78 Africa (rand) Zimbabwe 101,347 4,000,000 (ZS)