A good steak dinner in the U.S.costs 59USDwhile the exact meal costs 825MXN across the border in Mexico.Based on purchasing power parity, what is the implied MXN/USD exchange rate?

Question

Quizplus · Accepted Answer

To find the implied exchange rate, we need to divide the cost of the meal in Mexico (825 MXN) by the cost of the meal in the US (59 USD):

825 MXN ÷ 59 USD = 13.98 MXN/1USD

Therefore, the best choice is B.

A Good Steak Dinner in the U