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If the Current Price of a Big Mac Is 30,500

Question 42

Multiple Choice

If the current price of a Big Mac is 30,500 rupiahs in Indonesia and $4.79 in the United States, what exchange rate does the Big Mac Theory of exchange rates predict?


A) 6367 rupiahs per dollar
B) 0) 0002 rupiahs per dollar
C) 1 rupiahs per dollar
D) 6336 rupiahs per dollar
E) 1460.95 rupiahs per dollar

Correct Answer:

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