If a McDonald's Big Mac Cost $3

question 155

Multiple Choice

If a McDonald's Big Mac cost $3.06 in the United States and 3.21 euros in the Euro area, then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?

• A)1.05 If the value is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area.
• B)1.05 If the value is less than this, it costs fewer dollars to buy a Big Mac in the U.S. then in the Euro area.
• C).95 If the value is less than this, it costs more dollars to buy a Big Mac in the U.S. than in the Euro area.
• D).95 If the value is less than this, it costs fewer dollars to buy a Big Mac in the U.S. than in the Euro area.

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Definitions:

Congruency

The degree of alignment or agreement between two or more elements, such as organizational goals and employee behavior or values.

Client Contacts

Interactions or communications between a business and its clients, often critical for developing and maintaining relationships.

Reward Problems

Issues or challenges that arise in the process of recognizing or compensating employees' efforts and achievements.

Distributive Justice

The perceived fairness of the distribution of resources and rewards within an organization or society, influencing individuals' satisfaction and motivation.