The "Big Mac Theory of Exchange Rates" tests the accuracy of the purchasing power parity theory.In July 2015,the Economist reported that the average price of a Big Mac in the U.S.was $4.79.In Sweden,the average price of a Big Mac at that time was 43.7 kronor.What is the "implied exchange rate" between Swedish kronor and U.S.dollars?
A) 0.11 kronor per dollar
B) 1.90 kronor per dollar
C) 9.12 kronor per dollar
D) 46.2 kronor per dollar
Correct Answer:
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