Assume That a Big Mac Cost $4

Multiple Choice

Assume that a Big Mac cost $4.93 in the U.S.and that the Brazilian real is undervalued by 23 percent.According to the Big Mac Index published by The Economist,a Big Mac would

A) cost a bit more in Brazil than in the U.S.by By 16 percent 16 16 percent
B) cost less in Brazil than in the U.S.
C) cost the same in both countries.Cost the same in bothThe Unconnected
D) would cost twice as much in Brazil.
E) would cost less than half of the U.S.price in Brazil.