If the Implied Exchange Rate Between Big Mac Prices in Canada

question 160

Multiple Choice

If the implied exchange rate between Big Mac prices in Canada and the Philippines is 68 pesos per Canadian dollar, but the actual exchange rate between Canada and the Philippines is 43 pesos per Canadian dollar, which of the following would you expect to see?

• A)a depreciation of the Canadian dollar
• B)a decrease in the demand for Philippine pesos
• C)a decrease in the demand for Canadian dollars
• D)an appreciation of the Philippine pesos
• E)an increase in the demand for both Philippine pesos and Canadian dollars

---

Definitions:

Sales Objectives

Specific goals set by a business regarding the amount of product it aims to sell within a certain period.

Market Share

The percentage of total sales in a market generated by a particular company or product, indicating competitive strength and market dominance.

Financial Objectives

The specific, measurable financial goals of an organization, including profit targets, revenue growth, and return on investment.

Return On Marketing Investment

A metric used to measure the effectiveness of a marketing campaign, calculated by dividing the revenue generated by the marketing effort by the cost of the marketing activity.