Question: 33
(Choose 1 answer)
If the price of a Big Mac is $5 in the United States and 4 euros in the Eurozone, according to the theory of
purchasing-power parity (PPP), what should be the nominal exchange rate?
A. 0.8 euros per dollar
B. 1.25 euros per dollar
C. 1.5 euros per dollar
D. 2 euros per dollar
