6.1) If a Big Mac costs $4.99 in the United States and 529 yen in Japan, what is the estimated exchange rate of yen per dollar as implied by the Big Mac prices? ttt 6.2) Inflation in Mexico is expected to be 2% while it is expected to be 1% in the U.S. The price of a Big Mac in the U.S. is $4.99 and the price in Mexico is 111 Pesos. What is the implied PPP of the Peso per dollar? ttt 6.3) The implied PPP rate of exchange of Korean Won per U.S. dollar is 10.80. The current exchange rate is Won 9.60/$. Thus, according to PPP and the Law of One Price, at the current exchange rate the Won is (overvalued or undervalued) by approximately % 6.4) The implied PPP exchange rate is U.S. dollar is $1.20/ but the actual exchange rate is $1.18/. Thus, at current exchange rates the euro appears to be (overvalued or undervalued) by approximately % 6.5) If a Honda Prelude costs 16,964 in Europe, then at an exchange rate of $1.18/, the same car should cost in the U.S. (All else equal and with efficient markets.) t t