Question: If a Big Mac costs $ 3 . 0 0 in the US and the current spot exchange rate between the US Dollar and the

If a Big Mac costs $3.00 in the US and the current spot exchange rate between the US
Dollar and the Euro is $1.40, based on the Absolute version of Purchasing Power
Parity, what should the cost of the Big Mac be in Spain?
The current Spot rate between Australian Dollars and US Dollars is A$1.12/US$. If
the expected annual rate of inflation is 3% in Australia and 1% in the US, according
to the theory of Relative PPP, the Spot rate one year from now should be closest to
If a Big Mac costs $3.00 in the US and the

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