The idea behind the "Big Mac index" is a test of

Name: The idea behind the "Big Mac index" is a test of
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The "Big Mac index" is a test of purchasing power parity theory, which suggests that exchange rates should adjust to equalize the prices of identical goods, such as a Big Mac burger, in different countries. The index compares the prices of a Big Mac burger in different countries to determine if exchange rates are overvalued or undervalued.

The Idea Behind the "Big Mac Index" Is a Test