If a Big Mac Costs $3

question 62

Multiple Choice

If a Big Mac costs $3.41 in the United States and $2.67 in Argentina (the price of a Big Mac in Argentine pesos converted into dollars at the spot exchange rate) , which of the following is most likely true?

• A)The peso is overvalued against the dollar.
• B)The dollar is overvalued against the peso.
• C)It should be harder for a U.S. tourist to buy a leather coat in Buenos Aires because the dollar won't go very far.
• D)It will be cheap for Argentine companies to invest in the United States because the dollar is relatively weak.

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Definitions:

3-ethyl-3-methylhexane

A branched alkane with the formula C8H18, having an ethyl and a methyl group on the third carbon of the hexane chain.

Ethyl

A univalent radical, C2H5, derived from ethane and forming many compounds, used in chemical synthesis.

Methyl

A hydrocarbon group, CH3, often acting as a substituent in organic molecules.

Structures Below

Generally refers to a graphical representation of the spatial arrangement of atoms and the bonds between them which appears in the subsequent part of a document or presentation.