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For each country, compute the predicted exchange rate of the local currency perU.S. dollar, asuming that the price of a Big Mac in the US
For each country, compute the predicted exchange rate of the local currency perU.S. dollar, asuming that the price of a Big Mac in the US is $5.5. Hint: show allyour calculations .b) How well does the theory of purchasing-power parity explain exchange rates?
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