Question
Macroeconomics Question on Business cycles and economic models
The following table provides a list of countries selling Big Mac and market exchange rates in January 2019.
Country| Big Mac
(Price in local currency)| Market Exchange Rate
(Local currency per USD)
---|---|---
United States| 5.58 USD| 1.00
Norway| 50.00 Kroner| 8.53 Kroner/USD
Japan| 390.00 Yen| 108.44 Yen/USD
Mexico| 49.00 Pesos| 17.31 Pesos/USD
China| 20.90 Yuan| 6.85 Yuan/USD
Russia| 110.17 Rubles| 66.69 Rubles/USD
India| 178.00 Rupees| 69.69 Rupees/USD
Using the above information, the cheapest price (in USD) of Big Mac is _______ (round off to 2 decimal places).
Answer
The correct answer is: 1.63 or 1.67 (approx.)