Question: A case study in the chapter analyzed purchasing-power parity for several countries using the price of Big Macs. Here are data for a few more
A case study in the chapter analyzed purchasing-power parity for several countries using the price of Big Macs. Here are data for a few more countries: For each country, select the predicted exchange rate of the local currency per U.S. dollar. (Hint: Recall that the U.S. price of a Big Mac was \$5.58.) According to purchasing-power parity, the predicted exchange rate between the Hungarian forint and the Canadian doliar is forints per Canadian dollar. However, the actual exchange rate is forints per Canadian dollar
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