Calculation of exchange rate.
Using the exchange rates and prices in the tables above:
1. Illustrate what was the Peso price for a U.S. burger in 2001?
2.What was the PPP exchange rate of the Argentine Peso in 2001? Peso____/US$
3.Was the Peso overhauled or undervalued in 2001 and by how much?_____by what%_____
4.What was the Peso price of a US burger in 2002?Peso________
5.What was the PPP exchange rate of the Argentine Peso in2002? Peso___________/US$
6.Was the Peso overvalued or undervalued in 2002, by how much? ________by______%
Between 2001 and 2002, relative to the dollar:
1.Has the real value of the Peso appreciated or depreciated & by how much?___________(HINT: the real value of the currency is the ratio of its burger price over the U.S. burger price)