Question: S 1 - S 2 S 2 = i A U D - i N Z D [ S 1 and S 2 are set

S1-S2S2=iAUD-iNZD
[S1 and S2 are set upasNZDAUD]
Which of the following statements about the equation, described above, is correct?
It's the approximate formula for the Fisher effect
It's the formula for the calculation of over- or under-valuation in the BigMac Index calculation
It's the formula for the calculation of inflation differential between two countries
It is the approximate formula for the international Fisher effect
S 1 - S 2 S 2 = i A U D - i N Z D [ S 1 and S 2

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