Question: 2. Calculate the implied exchange rate using the following data. Chapman Big Macs cost 6 Panther dollars USC Big Macs cost 4 Trojan dollars UCLA

2. Calculate the implied exchange rate using the following data.

Chapman Big Macs cost 6 Panther dollars

USC Big Macs cost 4 Trojan dollars

UCLA Big Macs cost 3 Bruin dollars

US Big Mac costs 4 dollars

3. How much are the Chapman, USC, and UCLA currencies over or undervalued?

Actual exchange rates: Chapman $/US$ = 2 USC $/US$ = 1 UCLA$/US$= 4

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