Question: Suppose the is currently undervalued by 7.5% versus the USD. Its kind of peculiar, but this means the USD/ exchange rate would have to appreciate

Suppose the is currently undervalued by 7.5% versus the USD. Its kind of peculiar, but this means the USD/ exchange rate would have to appreciate 8.108% in order for the to be neither undervalued nor overvalued.

A. True

B. False

(Thank You!)

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