Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the dollar/pound exchange rate is $2/pound, a Big Mac costs $5 in New York City and costs 2
pounds in London, the pound is
and U.S. tourists will be
overvalued; better off in New York
undervalued; better off in New York
undervalued; better off in London
overvalued; better off in London
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