Please instructor help me solve this question with detailed explanation. Thx
A case study in Chapter 12 analyzed purchasing power parity for several countries using the price of Big Macs. Go on the Website of "The Economist" n=Newspaper at http://www.economist.com/content/big-mac-index and find the data on the Big Mac Index for January 2021 and save it to your computer. Print the January 2021 article on the Big Mac Index and attach it to your assignment. For actual exchange rates, you may use the internet. a)Using the data table from "The Economist", fill in the data on local price of the Big Mac and actual exchange rate. Then compute the predicted exchange rate of the local currency per U.S. dollar. (Note the U.S. price of a Big Mac from the article). Make sure to show your calculations in the predicted exchange rate column.Arial 11 + 3 5 1 6 A case study in Chapter 12 analyzed purchasing power parity for several countries using the price of Big Macs. Go on the Website of "The Economist" n=Newspaper at http://www.economist.com/content/big-mac-index and find the data on the Big Mac Index for January 2021 and save it to your computer. Print the January 2021 article on the Big Mac Index and attach it to your assignment. For actual exchange rates, you may use the internet a)Using the data table from "The Economist", fill in the data on local price of the Big Mac and actual exchange rate. Then compute the predicted exchange rate of the local currency per U.S. dollar. (Note the U.S. price of a Big Mac from the article). Make sure to show your calculations in the predicted exchange rate column. UPDATE Answer. Predicted Exchange Actual Exchange Rate(Per Country Big Mac Price in local currency Rate $US) US Dollar Mexican Peso Argentine Peso Brazilian Real Chilean Peso b) Summarize the article in one paragraph, highlighting the main points. Answer. c) Looking at the exchange rates predicted by the Purchasing Power Parity, how well do you think the theory of purchasing power parity explains exchange rates for the countries in your table in part a above? 18 Ca)Using the data table from "The Economist", ll in the data on local price of the Big Mac and actual exchange rate. Then compute the predicted exchange rate of the local currency per US. dollar. (Note the US. price of a Big Mac from the article). Make sure to show your calculations in the predicted exchange rate column. Answer. Predicted Exchange Country Big Mac Price in local currency Rate Mexican Peso Argentine I Peso Brazilian Real b) Summarize the article in one paragraph, highlighting the main points. Answer. 0 UPDATE ( c) Looking at the exchange rates predicted by the Purchasing Power Parity, how well do you think the theory of purchasing power parity explains exchange rates for the countnes In your table in part a above
