The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory.In July 2015,The Economist reported that the average price of a Big Mac in the United States was $4.79.In India,the average price of a Big Mac at that time was 116.25 rupees.What is the "implied exchange rate" between the yen and the dollar?
A) 0.04 rupees per dollar
B) 24.27 rupees per dollar
C) 60.47 rupees per dollar
D) 556.84 rupees per dollar
Correct Answer:
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