1. The Big Mac Index has some significant explanatory value in predicting long-term exchange rates.  But all of the following are weaknesses of relying solely on the Big Mac Index to predict long-term exchange rates EXCEPT: (pick one)

 It leaves out the role of tax differences across countries.

 It leaves out the role of land cost differences across countries.

It is erroneous to rely on such a simple commodity to begin to assess the value of a country's currency.

 It leaves out the role of differences in corruption across countries.

 It leaves out the role of differences in consumer tastes across countries.