Multiple Choice
If the implied exchange rate between Big Mac prices in the United States and the Philippines is 68 pesos per dollar,but the actual exchange rate between the United States and the Philippines is 43 pesos per dollar,which of the following would you expect to see?
A) a depreciation of the dollar
B) a decrease in the demand for Philippine pesos
C) a decrease in the demand for dollars
D) an appreciation of the Philippine pesos
Correct Answer:
Verified
Correct Answer:
Verified
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