Multiple Choice
According to purchasing-power parity theory, if a McDonald's Big Mac cost U.S. $2.50 in the United States and 10 Tunisian dinars, what should the exchange rate be?
A) 1/4 Tunisian dinars per U.S. dollar
B) 1 Tunisian dinar per U.S. dollar
C) 4 Tunisian dinars per U.S. dollar
D) 25 Tunisian dinars per U.S. dollar
Correct Answer:
Verified
Correct Answer:
Verified
Q44: Which of the following terms refers to
Q47: A Canadian firm opens a factory that
Q49: Suppose that the real exchange rate between
Q50: Which of the following does net capital
Q51: Suppose that the exchange rate is 10
Q52: Suppose Bob, a Greek citizen, opens a
Q62: List the factors that might influence a
Q75: A rational investor will always purchase the
Q114: Under what circumstances does purchasing-power parity explain
Q163: What does purchasing-power parity imply about the