If the price of a Big Mac in the U.S.is $2.56,and in Japan it is Yen 300,then the implied exchange rate is Yen 117.19/$US.

Name: If the price of a Big Mac in the U.S.is $2.56,and in Japan it is Yen 300,then the implied exchange rate is Yen 117.19/$US.
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Question

Quizplus · Accepted Answer

To find the implied exchange rate, we divide the price of a Big Mac in Japan (Yen 300) by the price of a Big Mac in the U.S. ($2.56):

300 yen / $2.56 = 117.19 yen/$US

Therefore, the implied exchange rate is indeed Yen 117.19/$US.

If the Price of a Big Mac in the U