(Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. With the price of the computer given in local currency, the Indian rupee is:
A) overvalued by 9.1%.
B) overvalued by 20%.
C) undervalued by 12.5%.
D) undervalued by 20%.

Question

(Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. With the price of the computer given in local currency, the Indian rupee is: 
A) overvalued by 9.1%. 
B) overvalued by 20%. 
C) undervalued by 12.5%. 
D) undervalued by 20%.

Quizplus · Accepted Answer

The Answer of (Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. With the price of the computer given in local currency, the Indian rupee is: 
A) overvalued by 9.1%. 
B) overvalued by 20%. 
C) undervalued by 12.5%. 
D) undervalued by 20%.

(Table: Exchange Rates and Prices) Suppose a Computer Costs $500