If the price of a Big Mac in the United States is $2.56, and in Japan it is yen 300, then the implied exchange rate is yen 117.19/$US.
Yen 300/$2.56 = Yen 117.19/$1.

Name: If the price of a Big Mac in the United States is $2.56, and in Japan it is yen 300, then the implied exchange rate is yen 117.19/$US. Yen 300/$2.56 = Yen 117.19/$1.
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Question

Quizplus · Accepted Answer

To find the implied exchange rate, we need to divide the price in yen by the price in dollars. Therefore, Yen 300/$2.56 = Yen 117.19/$1, which is true.

If the Price of a Big Mac in the United