One Friday a Few Years Ago, the Big Mac Index

question 22

Multiple Choice

One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%. When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this?

• A)Japan's Central Bank acted to prop up the yen.
• B)Inflation in Japan suddenly spiked upward.
• C)McDonald's headquarters stopped hedging.
• D)McDonald's Japan reduced the yen price of a Big Mac.
• E)McDonald's Japan increased the yen price of a Big Mac.

---

Definitions:

Proximity

The physical closeness between people or things, influencing interactions and relationships.

Personal Nonverbal Cues

Involves the communication signals we send to others without using words, such as facial expressions, body language, and gestures.

PERCEIVE Framework

A strategic tool aimed at enabling better insight and action planning across various operational or project areas, enhancing understanding and performance.

Asian Cultures

Refers to the customs, traditions, languages, values, and practices shared by the peoples of Asian countries, which are diverse and vary significantly across regions.