A Big Mac costs $5.25 in Canada,but $4.66 in the Euro area.This implies that
A) the Canadian dollar is expected to depreciate against the euro.
B) the Canadian dollar is expected to appreciate against the euro.
C) 1 Canadian dollar can be exchanged for 1.126 euro in the international market.
D) 1 Canadian dollar can be exchanged for 0.89 euro in the international market.
Correct Answer:
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