Suppose that on January 1 2009,  the TL price of the dollar is 1.40 over    the year, inflation rate in Turkey  is 25 % and U.S. inflation rate is  10%. If the       exchange rate is $1= 1.50 TL at the end of the year, which currency appear to be  overvalued.?

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Q: exchange rate

A: an exchange rate is the rate at which one national currency will be exchanged for another. In other…