Calculating Actual and Implied PPP Exchange Rates Exercise 8 Below is an excerpt from the 2003 Big Mac Index. Using the values given, fill in the table with the missing values. In local currency Implied PPP of the dollar Actual dollar exchange rates April 22, 2003 Under(-)/ over(+) valuation against the dollar % 1.61 The Economist Big Mac Index Big Mac Prices In dollars United States $2.71 2.71 Australia A$ 3.00 1.86 Brazil Real 4.55 1.48 China Yuan 9.90 Denmark Krone 27.75 4.10 Egypt Pound 8.00 1.35 Hong Kong HK$11.50 Malaysia M$5.04 1.33 Russia Ruble 41.00 1.32 South Korea Won 3,300 2.71 Switzerland SFr 6.30 4.59 1.11 1.68 3.65 8.28 6.78 -45 -56 +51 -50 -46 -51 2.95 4.24 15.1 7.80 3.80 31.1 1,220 nil 2.32 Source: "McCurrencies." The Economist, April 24, 2003, p. 80. (Note: See Example 7 above for an explanation of the Big Mac Index.)