According to purchasing-power parity theory,if the same fast-food hamburger costs $2.00 in Canada and 10 Tunisian dinars,what should the exchange rate be?

Question

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According to purchasing-power parity, the exchange rate should equalize the price of the hamburger in both countries. If a hamburger costs $2.00 in Canada and 10 Tunisian dinars in Tunisia, the exchange rate should be 5 Tunisian dinars per dollar (10 dinars / 2 dollars = 5 dinars per dollar).

According to Purchasing-Power Parity Theory,if the Same Fast-Food Hamburger Costs