Question: The table below provides data for 3 countries for the Big Mac Index as published by the Economist magazine. Based on the table, answer the

The table below provides data for 3 countries for the Big Mac Index as published by the Economist magazine.

The table below provides data for 3 countries for the Big Mac

Based on the table, answer the following questions.

(a) What is the real exchange rate between Mexican Peso (ARS) and United States Dollar (USD), i.e. qARS/USD?

(b) Is the Canadian Dollar over-valued or under-valued with respect to the Mexican Peso? By how much?

Exchange Rate (LCU/USD) 1.00 Price (in Local Currency Units) Price (in USD) Country United States 4.30 4.30 70 16.97 4.13 Mexico 4.53 5.90 1.30 Canada

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