You Have Recently Been Net Surfing with Your Friends in Russia;the

You have recently been net surfing with your friends in Russia;the main topic of your recent e-mail exchange is the newest Drake album.You inform your friends in Russia that you can purchase the album at a U.S.seller for $11.99.You are told that in Russia the album costs 70,000 rubles.Suppose that the current dollar/ruble exchange rate is 1 ruble = $.000175 (or equivalently $1 = 5,714 rubles).According to the purchasing power parity view of exchange rate calculations,does the current exchange rate represent a long-run equilibrium exchange rate? Is the dollar overvalued or undervalued? The ruble? Explain.