Multiple Choice
If the dollar/pound exchange rate is $2/£,a Big Mac costs $5 in New York City and costs £4 in London,the pound is ________,and U.S.tourists will be ________.
A) overvalued; better off in London
B) overvalued; better off in New York
C) undervalued; better off in London
D) undervalued; better off in New York
Correct Answer:
Verified
Correct Answer:
Verified
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