If the Current Price of a Big Mac Is 30,500

question 215

Multiple Choice

If the current price of a Big Mac is 30,500 rupiahs in Indonesia and $4.79 in the United States, what exchange rate does the Big Mac Theory of exchange rates predict?

• A)6367 rupiahs per dollar
• B)0)0002 rupiahs per dollar
• C)1 rupiahs per dollar
• D)6336 rupiahs per dollar
• E)1460.95 rupiahs per dollar

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Definitions:

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious motivations and conflicts as drivers of human behavior.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychotherapy

A therapeutic treatment involving psychological methods, typically involving conversations between a therapist and a client, to address mental health issues or problems.

Learning Theorists

Researchers and psychologists who study how people learn and acquire knowledge, focusing on the processes of learning and behavior change.