A Big Mac Costs 6

Multiple Choice

A Big Mac costs 6.60 lira in Turkey and $4.20 in the United States.If the actual exchange rate is 1.85 lire/dollar,the Turkish lira is _________,and U.S.tourists will find that Big Macs are _______ than in the United States.

A) overvalued, more expensive
B) overvalued, less expensive
C) undervalued, more expensive
D) undervalued, less expensive