Recall Application 1, "The Chinese Yuan and Big Macs," to Answer

Recall Application 1, "The Chinese Yuan and Big Macs," to answer the following questions:
-According to the application, because the actual dollar- yuan exchange rate was 6.8 yuan per U.S. dollar and the predicted purchasing power exchange rate (using the Big Mac) in China is 3.49 yuan, then:

A) the dollar is undervalued and the Big Mac is overvalued.
B) the dollar is undervalued.
C) the Big Mac is overvalued.
D) the yuan is undervalued.