According to The Economist magazine's Big Mac index,one of the most overvalued currencies as of July 2008 was the Norwegian kroner.Which of the following is a likely implication of that fact?
A)That goods and services are more expensive in Norway than in the U.S.
B)That the Norwegian currency is going to be undervalued in the near future.
C)That the Norwegian currency is likely to appreciate in the near future.
D)That the Norwegian government is running a large deficit.

Question

Quizplus · Accepted Answer

The Big Mac index compares the prices of a McDonald's Big Mac burger in different countries to determine the relative value of currencies. Therefore, if the Norwegian kroner is overvalued according to this index, it suggests that goods and services in Norway are more expensive than in the U.S.

According to the Economist Magazine's Big Mac Index,one of the Most