Big Mac Index Theory | Purchasing Power Parity Formula & Examples
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What Is Purchasing Power Parity (PPP), and How Is It Calculated?
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A case study in the chapter analyzed purchasing-power parity for several countries using the price of Big Macs. Here are data for a few more countries: Predicted Actual Country Price of a Exchange Exchange Big Mac Rate Rate (COLUMN CANT COPY) a. For each country, compute the predicted exchange rate of the local currency per U.S. dollar. (Recall that the U.S. price of a Big Mac was 3.41.) b. According to purchasing-power parity, what is the predicted exch
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