Lets return to the Big Mac Index and the concept of Purchasing Power Parity. If the current price of a Big Mac hamburger in the United States is $3.80, and the current price of the same burger in Germany is €2.75, what is the implied exchange rate of dollars per euro?
A) $0.7237/€
B) $1.3818/€
C) $1.4421/€
D) $1.5133/€
Correct Answer:
Verified
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