Assume that CAD15,955 is the current price level in Canada, while AUD16,806 is the current price level in Australia for

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Assume That Cad15 955 Is The Current Price Level In Canada While Aud16 806 Is The Current Price Level In Australia For 1 (28.64 KiB) Viewed 9 times

Assume that CAD15,955 is the current price level in Canada, while AUD16,806 is the current price level in Australia for an equivalent bundle of goods. Given a spot exchange rate of CAD1.0128/AUD, what is the internal and external purchasing power of CAD1.40 million? Is the Canadian dollar overvalued or undervalued relative to the Australian dollar? O a. 87.75 consumption bundles; 82.25 consumption bundles; undervalued O b. 87.75 consumption bundles; 82.25 consumption bundles; overvalued O c. 83.30 consumption bundles; 86.64 consumption bundles; undervalued O d. 83.30 consumption bundles; 86.64 consumption bundles; overvalued O e. 86.64 consumption bundles; 83.30 consumption bundles; overvalued