Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

A case study in the chapter analyzed purchasing-power parity for several countries using the price of Big Macs. Here are data for a few more countries: For each country, select the predicted exchange rate of the local currency per U.S. dollar.

Country Price of big Mac Predicted exchange rate Actual exchange rate
Chile 2640 peso ________________ 679 peso/$
Hungry 850 forints ________________ 280 fornits/$
Czech Republic 85 korunas ________________ 22.3 korunas/$
Brazil 16.8 real ________________ 3.72 real/$
Canada 6.77 C$ ________________ 1.33 C$

According to purchasing power parity, the predicted exchange rate between the Hungarian forint and the Canadian dollar is __________. However, the actual exchange rate is _________forints per Canadian dollar.

Sagot :

Parrain

Answer:

Question leaves out the price of a Big Mac which is $4.37.

Predicted exchange rate = Country price of Big Mac/ US price of Big Mac

Predicted exchange rate:

Chile = 2,640/4.37 = 604.12 Pesos / US dollar

Hungary = 850/4.37 = 194.51 Forints / USD

Czech Republic = 85 / 4.37 = 19.45 Korunas / USD

Brazil = 16.8/4.37 = 3.84 Real/ USD

Canada = 6.77/4.37 = 1.55 C$/ US$

According to purchasing power parity, the predicted exchange rate between the Hungarian forint and the Canadian dollar is 125.55 Forint per C$. However, the actual exchange rate is 210.53 forints per Canadian dollar.

Predicted exchange rate = 850/6.77 = 125.55 Forint per C$

Actual Exchange rate = 280/1.33 = 210.53 Forint per C$

Answer:

Question leaves out the price of a Big Mac which is $4.37.

Predicted exchange rate = Country price of Big Mac/ US price of Big Mac

Predicted exchange rate:

Chile = 2,640/4.37 = 604.12 Pesos / US dollar

Hungary = 850/4.37 = 194.51 Forints / USD

Czech Republic = 85 / 4.37 = 19.45 Korunas / USD

Brazil = 16.8/4.37 = 3.84 Real/ USD

Canada = 6.77/4.37 = 1.55 C$/ US$

According to purchasing power parity, the predicted exchange rate between the Hungarian forint and the Canadian dollar is 125.55 Forint per C$. However, the actual exchange rate is 210.53 forints per Canadian dollar.

Predicted exchange rate = 850/6.77 = 125.55 Forint per C$

Actual Exchange rate = 280/1.33 = 210.53 Forint per C$

Explanation:

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.