Recall Application 1, "The Chinese Yuan and Big Macs," to answer the following questions:
-According to the application, the Big Mac "exchange rate" is based on which economic theory?

Question

Quizplus · Accepted Answer

The Big Mac "exchange rate" is based on the Law of One Price, which suggests that identical goods should have the same price in different countries when converted to a common currency.

Recall Application 1, "The Chinese Yuan and Big Macs," to Answer