Look back at the Big Mac Index in Table 20.1. Compute the level of the exchange rate

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Look back at the Big Mac Index in Table 20.1. Compute the level of the exchange rate that would be needed to equalize the dollar price of the Big Mac across all countries. State whether each currency appears to be currently overvalued or undervalued relative to the dollar, and calculate the amount (as a percentage) by which the currency would need to appreciate or depreciate in order to equalize the price of a Big Mac.
Look back at the Big Mac Index in Table 20.1.
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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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