The "Big Mac Theory of Exchange Rates" Tests the Accuracy

question 18

Multiple Choice

The "Big Mac Theory of Exchange Rates" tests the accuracy of purchasing power parity theory.In July 2015,The Economist reported that the average price of a Big Mac in the United States was $4.79.In India,the average price of a Big Mac at that time was 116.25 rupees.What is the "implied exchange rate" between the yen and the dollar?

• A)0.04 rupees per dollar
• B)24.27 rupees per dollar
• C)60.47 rupees per dollar
• D)556.84 rupees per dollar

---

Definitions:

Parent-Adolescent Interventions

Programs or strategies designed to improve communication, understanding, and relationships between parents and their adolescent children, often aiming to reduce conflicts and promote mental health.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all living organisms and many viruses.

LGBT Teens

Lesbian, Gay, Bisexual, and Transgender adolescents who are in the process of understanding, accepting, and expressing their sexual orientation and gender identity.

Depression

A common and serious medical illness that negatively affects how one feels, the way one thinks, and how one acts, leading to feelings of sadness and a loss of interest in activities.