I do not understand why it close free to buy a Big Mac in US then in Euro cause when I calculate the price of Euro to dollar by 2 x 0.8= $1.6 which seem like Euro is cheaper than the price of dollar.

I v I 23. If a Big Mac costs $2.50 in the United States and 2 euros i the Euro area, then purchasing-power parity implies the nominal exchange rate is how many euros Ber dollar?" \\ u A b M a. .8 If the exchange rate is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area. T .1 @8 If the exchange rate is less than this, it costs fewer dollars to buy a Big Mac in the U.S. then in the Euro area. TI c. 1.25 If the exchange rate is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area. (1. 1.25 If the exchange rate is less than this, it costs fewer dollars to buy a Big Mac in the U.S. than in the Euro 6. :Z; ofthe above is correct. ? Z X 0 .q) Zn