8. Purchasing-power parity Using data from The Economist's Big Mac Index for 2016, the following table shows the local currency price of a Big Mac in several countries as well as the actual exchange rate between each country and the United States. At the time of the data collection, a Big Mac would have cost you $4.93 in the United States and GBP 2.89 in the United kungdom. The actual exchange rate between the British pound and the U.S. dollar was $1.63 per pound. The dollar price of a Big Mac purchased in the United Kingdom was, therefore, computed as follows: DollarpriceofaBigMacintheUnitedKingdom=GBP2.89Clip.1.0fi.s=$4.71 For the price you paid for a Big Mac in the United States, you could have purchased a Big Mac in the United Kingdom and had somie change left over for fries Complete the final columin of the cable by computing the doliar price of a dig Mac for the countries where this amount is not gived. Note: Round your answers to the nearest cent. Purchasing-power parity (PpP) theory states that exchange rates woulid need to equalize the prices of goods in any two countries, For the dollar price of a Big Mac to be the same in both countries, a U.S. citizen would need to be able to convert 54.93 into exactly Gep 2.89. To find the exchange rate at which hamburger purchasing power is the same in both countries, divide the price in the United 5 tates by the price in the United Kingdom: PPPBxchangeRate(U,S,DollaraperBritishpound)=Eul.25$ma=$1.71perpound The exchanae rate that would have equalized the dollar price of a Big Mac in the United States and Brazil (that is, the Ppp exchange rate for Big Macs) This change would mean that the real had against the dollar. If Big Macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? Check all that apply. Exporting B. Moes from Norway to Chine Lxporting Big Macs from the United Kingdom to Poland Exportiog Dig Macs from Bratil to the United Stotes