1. Use the information in the table below to answer the following questions.
A. Calculate the dollar price of the economist magazine in Canada and
Japan as of 12/2/99.
B. Calculate the implied purchasing power parity exchange rates between
Canada and the US, and between Japan and the US based on the price of
the Economist magazine.
C. Is the US dollar overvalued or undervalued with respect to the Canadian
dollar and the Japanese yen in terms of purchases of the Economist? State
why it is over or undervalued.