If a Big Mac Hamburger Sells for the Same Dollar

question 26

Multiple Choice

If a Big Mac hamburger sells for the same dollar value in Tokyo as in Los Angeles then

• A) exchange rates are said to be fixed.
• B) purchasing power parity holds.
• C) Japanese yen have been replaced by dollars in Tokyo.
• D) the inflation rate in each country must equal zero.

---

Definitions:

Express Warranty

A written or verbal promise from a seller about the quality or performance of a product being sold.

Lifetime

The duration for which an entity, such as a product, organization, or individual, exists or is expected to function.

Express Warranty

An explicit promise by the seller regarding the quality, condition, or performance of the product being sold.

Bass Clarinet

A musical instrument that is a member of the woodwind family, larger than a regular clarinet and producing a deeper, richer sound.