Question: Question 3: (Zpoints) Big Mac Index and Trade War between China and the us (Chapter 5) A Big Mac costs 20 yuan in China and

Question 3: (Zpoints) Big Mac Index and Trade War between China and the us (Chapter 5) "A Big Mac costs 20 yuan in China and US$ 6 in the United States. The implied exchange rate is 3.96. In addition, the actual exchange rate, 6.48, suggests the Chinese yuan is 35 % overvalued" a. Is the above statement correct? Explain your answer. b. Explain how a country may use its exchange rate to solve its trade deficit

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