Question: A Big Mac costs $ 4 . 0 0 in the United States and 7 . 0 0 Euros in Germany. If the exchange rate
A Big Mac costs $ in the United States and Euros in Germany. If the exchange rate is $ then purchasing power parity predicts the US dollar is Select undervalued "overvalued" In the longrun, the demand for US dollars will Select increase "remain unchanged", "decrease" and the value of the US dollar will Select depreciate "appreciate", "remain unchanged"
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