The Big Mac Index suggests that exchange rates should leave Big Mac hamburgers costing the same in the United States as abroad.

Question

Quizplus · Accepted Answer

The Big Mac Index is a measure of purchasing power parity (PPP) between two currencies. It suggests that exchange rates should adjust to ensure that a Big Mac hamburger costs the same in different countries when converted to a common currency, such as the US dollar. Therefore, the statement is true.

The Big Mac Index Suggests That Exchange Rates Should Leave