Table 30-1
$$\begin{array} { | l | l | l | l | }
\hline & & & \
\text { Country } & \text { Big Mac Price } & \text { Implied Exchange Rate } & \text { Actual Exchange Rate } \
\hline \text { Denmark } & 34.59 \mathrm { kroner } & & 6.81 \mathrm { kroner } \text { per dollar } \
\hline \text { Peru } & 10.0 \mathrm { new } \text { sols } & 3.18 \text { new sols per dollar } \
\hline \text { Sweden } & 43.7 \mathrm { kronor } & & 8.52 \mathrm { kronor } \text { per dollar } \
\hline \text { Turkey } & 10.25 \text { lire } & 2.65 \text { lire per dollar } \
\hline
\end{array}$$
-Refer to Table 30-1.Fill in the missing values in the above table.Assume the Big Mac is selling for $4.79 in the United States.Explain whether the U.S.dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.

Question

Table 30-1
 $$\begin{array} { | l | l | l | l | } 
\hline & & & \
\text { Country } & \text { Big Mac Price } & \text { Implied Exchange Rate } & \text { Actual Exchange Rate } \
\hline \text { Denmark } & 34.59 \mathrm { kroner } & & 6.81 \mathrm { kroner } \text { per dollar } \
\hline \text { Peru } & 10.0 \mathrm { new } \text { sols } & 3.18 \text { new sols per dollar } \
\hline \text { Sweden } & 43.7 \mathrm { kronor } & & 8.52 \mathrm { kronor } \text { per dollar } \
\hline \text { Turkey } & 10.25 \text { lire } & 2.65 \text { lire per dollar } \
\hline
\end{array}$$
-Refer to Table 30-1.Fill in the missing values in the above table.Assume the Big Mac is selling for $4.79 in the United States.Explain whether the U.S.dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.

Quizplus · Accepted Answer

The Answer of Table 30-1
 $$\begin{array} { | l | l | l | l | } 
\hline & & & \
\text { Country } & \text { Big Mac Price } & \text { Implied Exchange Rate } & \text { Actual Exchange Rate } \
\hline \text { Denmark } & 34.59 \mathrm { kroner } & & 6.81 \mathrm { kroner } \text { per dollar } \
\hline \text { Peru } & 10.0 \mathrm { new } \text { sols } & 3.18 \text { new sols per dollar } \
\hline \text { Sweden } & 43.7 \mathrm { kronor } & & 8.52 \mathrm { kronor } \text { per dollar } \
\hline \text { Turkey } & 10.25 \text { lire } & 2.65 \text { lire per dollar } \
\hline
\end{array}$$
-Refer to Table 30-1.Fill in the missing values in the above table.Assume the Big Mac is selling for $4.79 in the United States.Explain whether the U.S.dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.

Table 30-1 -Refer to Table 30-1