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Price Big Mac Effective exchange rate in USD Equilibrium exchange rate (PPP) in USD 1 USD = x local currency US Dollar Local currency 1
Price Big Mac Effective exchange rate in USD Equilibrium exchange rate (PPP) in USD 1 USD = x local currency US Dollar Local currency 1 USD = X local currency USA Euro zone Switzerland China Japan 5.00 USD A 6.50 CHF 20.00 CNY 100.0 JPY 5.00 USD 4.50 USD B 3.00 USD 5.00 USD 1.00 0.80 20.0 0.90 1.30 4,00 D 1) Suppose that the Japanese exchange rate moves from de 1 USD = 100 JPY to 1 USD = 110 JPY. Is it an appreciation or a depreciation of the US dollar against the Japanese yen? PSS PARIS OF 2) Calculate, by detailing the computation, the missing values A, B.C. and D in the table above
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