Question: Please look at the attached screenshot for the question The price of a N95 surgical face mask in the United Kingdom is GBP78.51/mask, and the

Please look at the attached screenshot for the question

Please look at the attached screenshot for the question The price of

The price of a N95 surgical face mask in the United Kingdom is GBP78.51/mask, and the price of the same item in Australia is AUD73.03/mask. The market exchange rate is GBP0.8890/AUD. Assume that the price levels of N95 surgical face masks in the two countries are indicative of the differences in the prices of all other goods and services between the two nations. Is the British pound (GBP) overvalued or undervalued relative to the Australian dollar (AUD)? Estimate the degree of over/undervaluation as a percentage. Select one: GBP is overvalued by 20.93% GBP is undervalued by 20.93% GBP is undervalued by 17.31% GBP is overvalued by 17.31% None of the other answers are correct

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