If a McDonald's Big Mac Cost $4

question 75

Multiple Choice

If a McDonald's Big Mac cost $4.50 in the United States and 3.60 euros in the Euro area,then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?

• A)1.25 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)1.25 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).80 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).80 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:

Prophase

The first stage of cell division in both mitosis and meiosis, characterized by the condensation of the chromatin and the formation of the mitotic spindle.

Meiosis

A form of cell division in sexually reproducing organisms that reduces the chromosome number by half, producing four haploid cells, each genetically distinct from the parent cell that gave rise to them.

Gametes

The reproductive cells (sperm and egg) that combine during sexual reproduction to form a new organism.

Polyploid Cells

Cells that contain more than two paired (homologous) sets of chromosomes, often seen in plants.