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One of the important concepts we are learning this week is PPP (Purchasing Power Parity). The Big Mac Index is a fun idea demonstrating the

One of the important concepts we are learning this week is PPP (Purchasing Power Parity). The Big Mac Index is a fun idea demonstrating the PPP using just one good, the McDonalds's big mac.

  • Pick a foreign currency. Find out the current exchange rate.
  • Based on the latestBig Mac Index, is the currency of your choice overvalued or undervalued?
  • Research and discuss a few possible reasons why the currency is overvalued/undervalued.

Note: You can find current exchange rates from numerous sources. Example: Yahoo! finance

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