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The "Big Mac Theory of Exchange Rates" Tests the Accuracy

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The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory.In July 2011,The Economist reported that the average price of a Big Mac in the United States was $4.07.In Japan,the average price of a Big Mac at that time was 320 yen.What is the "implied exchange rate" between the yen and the dollar?


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