Suppose a big mac costs 500 in japan and 425 in the us at a
Suppose a Big Mac costs 500 in Japan and $4.25 in the US, at a time with the XR is 112/$. Using the Big Mac theory of PPP, is the yen over-valued vs. the US$ or under-valued? Calculate the % over- or under-valuation. Show calculations.
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suppose a big mac costs 500 in japan and 425 in the us at a time with the xr is 112 using the big mac theory of ppp is
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