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Consider the following table that reports foreign currency-US dollar exchange rates, price of foreign basket in foreign currency (FX), and price of US basket in US dollar in 2015 and 2016. The idea is to compare US with foreign countries (Eurozone and South Korea) and learn the principle of PPP. Answer the questions. (a) Calculate the real exchange rates ( qUS/Foreign) for Eurozone and South Korea in 2015. Are euro and South Korea won undervalued in 2015? (b) Assume that you are in 2015 and that you do not know values in 2016. In view of PPP, do you expect these currencies to appreciate during 2015-2016? (c) Does the absolute PPP hold for each country in 2015 and 2016? (d) Calculate the percent changes in real exchange rates for each country from 2015 to 2016. Are these changes consistent with the fact that deviations from PPP die out at a rate of about 15% per year? (e) Does the relative PPP hold for each country? (f) Does the absolute PPP imply the relative PPP? Does the relative PPP imply the absolute PPP? Explain