Is the yuan over-or undervalued against the us dollar


Assume the U.S. dollar price of a Big Max is $3.57. The price in the China is 12.5 yuan. If the current exchange rate equals 6.83 yuan per dollar, is the yuan over-or undervalued against the U.S. dollar?

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Macroeconomics: Is the yuan over-or undervalued against the us dollar
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