Question 37 Given the information: Price of a BigMac in US: Price of a BigMac in Mexico: Exchange rate of MXN in Indirect Quote (MXN/USD): USD 3.75 MXN 40 1 USD = 7.50 MXN According to PPP the prices of Big Mac in US and Mexico will be identical, when 1 USD = MXN 0.09375 10.67 75 0.13333 Question 38 1 pts Given the information: Price of a BigMac in US: USD 3.75 Price of a BigMac in Mexico: MXN 40 Exchange rate of MXN in Indirect Quote I USD 7.50 MXN (MXN/USD): Based on absolute PPP violations as observed from the prices of Big Mac in US and Mexico, it would make sense for a US company doing business in Mexico to: produce in the US and sell in Mexico produce in Mexico sell in the US