If the average price of a typical Big Mac in the US is USD6.50, and the average price of the same typical Big Mac in Canada is CAD4.50, then the O a. None of the statements in this question are correct. O b. USD will remain overvalued relative to the CAD. OC USD is undervalued relative to the CAD. d. USD is overvalued relative to the CAD. Which of the following statements is true? 8. All the statements in this question are true. OD. Perfect financial market integration implies that the International Fisher Effect and Relative PPP give identical forecasts of the exchange rate. Oc Mathematically, the difference between the exact Fisher Effect equation and the approximate Fisher Effect equation is the cross-product term. Od. When the expected rate of inflation is low, the exact Fisher Effect and the approximate Fisher effect give virtually the same value for the nominal interest rate