Fill in the missing values in the following table. Assume that the Big Mac is selling for $4.93 in the United States. Explain whether the U.S. dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate if the actual exchange rate moves toward the purchasing power parity exchange rate. Finally, calculate the implied exchange rate between the Russian ruble and the New Zealand dollar and explain which currency is overvalued in terms of Big Mac purchasing power parity.

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Implied Exchange Rate Actual Exchange Rate Country Big Mac Price 2,100 pesos Chile 715.22 pesos per dollar Israel 16.9 shekels 3.94 shekels per dollar Russia 114 rubles 74.66 rubles per dollar New 5.9 New 1.51 New Zealand Zealand Zealand dollars dollars per U.S. dollar