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On big Mac on slide 28, a big Mac costs $5.58 in the U.S. and Peso 75 in Argentina. If the nominal exchange rate
On big Mac on slide 28, a big Mac costs $5.58 in the U.S. and Peso 75 in Argentina. If the nominal exchange rate between dollar and Peso is peso 37.46/$. Please calculate: (5 points) a. What is the real exchange rate between U.S. Big Mac and Argentina Big Mac? b. Which currency is overvalued and why?
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Basic Econometrics
Authors: Damodar N. Gujrati, Dawn C. Porter
5th edition
73375772, 73375779, 978-0073375779
