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The PPP based GDP of Japan is 5 trillion dollars and the market exchange rate...

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Finance

The PPP based GDP of Japan is 5 trillion dollars and the market exchange rate based GDP is $4 trillion. The market exchange rate is 125 yen per dollar. Is the Japanese yen undervalued or overvalued relative to the US dollar?

Undervalued

Overvalued

Neither undervalued nor over valued

The data is not sufficient to support any of the above three statements.

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