Multiple Choice
Suppose a Big Mac costs $4.20 in Canada and 9.55 zlotys in Poland.If the exchange rate is 2.77 zlotys per dollar,purchasing power parity predicts that
A) the dollar is undervalued.
B) the zloty is undervalued.
C) the zloty is overvalued.
D) both the dollar and the zloty are undervalued.
Correct Answer:
Verified
Correct Answer:
Verified
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