Suppose the price of a big mac in China is 16 Yuan, while in the US its price is 54. If the Yuan dollar exchange rate is a Yuan/dollar, by how much is the Yuan under/overvalued? A) undervalued %80 B) overvalued %75 C) overvalued %100 D)undervalued %100 E) undervalued %75

Suppose the price of a big mac in China is 16 Yuan, while in the US its price is 54. If the Yuan dollar exchange rate is a Yuan/dollar, by how much is the Yuan under/overvalued? A) undervalued %80 B) overvalued %75 C) overvalued %100 D)undervalued %100 E) undervalued %75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the price of a big mac in China is 16 Yuan, while in the US its price is 54. If the Yuan dollar
exchange rate is a Yuan/dollar, by how much is the Yuan under/overvalued?
A) undervalued %80
B) overvalued %75
C) overvalued %100
D)undervalued %100
E) undervalued %75

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