In the US, a big mac cost $4.55. If you buy the same big mac in Norway, it will cost 14.56 Kroner. Suppose that the current exchange rate is $1 US buys 2.85 Kroner. According to the law of one price, the exchange rate should be that $1 Kroner, and hence, we can predict that over time, the US dollar against the Kroner. US buys should O 2.75; appreciate O 2.75; depreciate O 3.2; appreciate O 3.2; depreciate