Recall the Application about the price of Big Macs in China and around the world to answer the following question(s) .
The following table is taken from the Application. For several years, The Economist has measured the prices of Big Macs throughout the world and compared the price differences to exchange rates.
-According to the table, when converted to U.S. dollars, Big Macs cost approximately ________ percent more in the United States than they do in China.
Definitions:
Market Rate
The current price or interest rate of goods, services, or securities in the marketplace, determined by supply and demand forces.
Premium
A premium refers to the amount paid for buying insurance or the amount paid over the face value of bonds.
Contract Rate
The interest rate specified in a contractual agreement, such as in a loan or bond.
Market Rate
The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.
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