If a McDonald's Big Mac Cost $4

Multiple Choice

If a McDonald's Big Mac cost $4.50 in the United States and 3.60 euros in the Euro area,then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?

A) 1.25 If the value is less than this,it costs more dollars to buy a Big Mac in the U.S.than in the Euro area.
B) 1.25 If the value is less than this,it costs fewer dollars to buy a Big Mac in the U.S.then in the Euro area.
C) .80 If the value is less than this,it costs more dollars to buy a Big Mac in the U.S.than in the Euro area.
D) .80 If the value is less than this,it costs fewer dollars to buy a Big Mac in the U.S.than in the Euro area.