Question
Suppose on Jan 1, 2018 a Big Mac costs $5.50 in the US Suppose on Jan 1, 2018, the actual INR/USD spot rate is 53.Noting
Suppose on Jan 1, 2018 a Big Mac costs $5.50 in the US
Suppose on Jan 1, 2018, the actual INR/USD spot rate is 53.Noting again that a Big Mac in India is INR 286, we can conclude that the Indian Rupee is:
Undervalued
Overvalued
Correctly Valued
In Equilibrium
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
