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    International Economics Study Set 12
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    Exam 12: Exchange Rate Determination
  5. Question
    When the Economist Magazine Runs Articles Using the Big Mac
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When the Economist Magazine Runs Articles Using the Big Mac

Question 172

Question 172

Multiple Choice

When The Economist magazine runs articles using the Big Mac hamburger to value exchange rates, it is using the principle of


A) exchange arbitrage.
B) market expectations.
C) purchasing power parity.
D) interest rate parity.

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