According to the Economist ("Big Mac Currencies," The Economist, April 17th 1993), in 1993, the average price of a Big Mac in the U.S. was $2.28. In Japan, Big Mac fans had to fork out ¥391 for this feast. However, in the currency market on April 13th, 1993, yenholders could buy a dollar for ¥113. What was real exchange rate for the $ against the ¥?
According to the Economist ("Big Mac Currencies," The Economist, April 17th 1993), in 1993, the average price of a Big Mac in the U.S. was $2.28. In Japan, Big Mac fans had to fork out ¥391 for this feast. However, in the currency market on April 13th, 1993, yenholders could buy a dollar for ¥113. What was real exchange rate for the $ against the ¥?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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According to the Economist ("Big Mac Currencies," The Economist, April 17th 1993), in 1993, the average
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