Question
Use the following information: Big Mac price: 6 dollars in US 2,600 colones in Costa Rica 2.1 dinars in Jordan Exchange rates: 650 colones
Use the following information: Big Mac price: 6 dollars in US 2,600 colones in Costa Rica 2.1 dinars in Jordan Exchange rates: 650 colones per USD 0.7 dinars per USD Income per capita: US: 66,000 (in dollars) Costa Rica: 11,000 (in dollars) Jordan: 4,000 (in dollars) How much does it cost to buy a Big Mac in Costa Rica, converted in dollars? How much does it cost to buy a Big Mac in Jordan, converted in dollars? How much undervalued is the colon relative to the US dollar, according to the Big Mac index? How much undervalued is the dinar relative to the US dollar, according to the Big Mac index?
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Basic Econometrics
Authors: Damodar N. Gujrati, Dawn C. Porter
5th edition
73375772, 73375779, 978-0073375779
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