A Big Mac costs $4.07 in Canada and 8.63 zlotys in Poland.If the exchange rate is 3 zlotys per Canadian, purchasing power parity predicts that

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Purchasing Power Parity (PPP) suggests that in the absence of transportation and other transaction costs, identical goods should have the same price in different countries when prices are expressed in a common currency. To check if the Canadian dollar is correctly valued against the zloty, we convert the price of a Big Mac in Poland to Canadian dollars using the given exchange rate (8.63 zlotys / 3 zlotys per Canadian dollar = 2.88 Canadian dollars). Since the Big Mac is cheaper in Poland (2.88 CAD) than in Canada (4.07 CAD), it suggests that the Canadian dollar is overvalued relative to the zloty, because you need fewer Canadian dollars to buy the same good in Poland than in Canada.

A Big Mac Costs $4