When the Big Mac in Egypt cost $US2.28, which is less than it does in converted US dollars, we can say it _____.
A) should not be measured
B) difficult to ascertain, as the currency is volatile
C) is undervalued
D) is overvalued

Question

Quizplus · Accepted Answer

When a Big Mac costs less in a foreign country compared to the United States after converting the local currency to USD through standard exchange rates, it is considered undervalued. This means that the country's currency is weaker than the US dollar and can purchase more Big Macs for the equivalent value.

When the Big Mac in Egypt Cost $US2