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With respect to the theory of purchasing power parity, the statistics in this table are Part 3 A. inconsistent, since purchasing power parity implies that
With respect to the theory of purchasing power parity, the statistics in this table are Part 3 A. inconsistent, since purchasing power parity implies that $4.33, when converted into other currencies, should be sufficient to just purchase a Big Mac in the non-U.S. countries. B. consistent since the domestic currency prices of Big Macs (for the non-U.S. countries), when converted into dollars, would not differ from $4.33 if transportation costs are included. C. inconsistent since the domestic currency prices of Big Macs (for the non-U.S. countries), when converted into dollars, differ markedly from $4.33. D. neither consistent or inconsistent, since purchasing power parity only applies to non-traded products. E. Both A and C are correct
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