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m of 40 A Big Mac costs on average $5.04 in the U.S. In India, one Big Mac costs Rupee 179.1. Given that the current

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of 40 A Big Mac costs on average $5.04 in the U.S. In India, one Big Mac costs Rupee 179.1. Given that the current exchange rate Rupee-USD is 77.3, the U.S. interest rate is 3.0%, and the Indian interest rate is 9.5%, how do you compare the "Big Mac" implied exchange rate with the current exchange rate? As an example, if your answer is positive, that implies that the "Big Mac" implied Rupee/USD exchange rate is higher that the current exchange rate, which means that the actual Rupee/USD is appreciated more against USD than the "Big Mac" implied exchange rate suggests. Choose the closest answer. Select one: O a. -0.0351 O b.-0.4809 O c. -0.3944 O d. none of these answers O e. -0.5403 O f. 1.3169 O 9.0.0351

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