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The Economist magazine is famous for its publication of the Big Mac index-a table of Big Mac TM prices in different countries around the world.
The Economist magazine is famous for its publication of the Big Mac index-a table of Big Mac TM prices in different countries around the world. The use of the Big Mac allows for a highly standardized product sold throughout the world. Given the following abbreviated table: Country PriceBig Mac China Rb 12,000 Indonesia Rp 20,000 U.K. $1.25 U.S. $2.50 If the 'Law of One Price' holds, what are the following implied exchange rates: = f1.00 (Enter your response rounded to the nearest penny.) Rp = $1.00 (Enter your response as an integer.)
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