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    International Economics Study Set 12
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    Exam 12: Exchange Rate Determination
  5. Question
    According to the "Big Mac" Index, If a Big Mac
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According to the "Big Mac" Index, If a Big Mac

Question 28

Question 28

True/False

According to the "Big Mac" index, if a Big Mac costs $2.28 in the United States and 25.75 krone in Denmark (equivalent to $4.25), then the Danish krone is an undervalued currency.

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