Suppose the price of a Big Mac is 4 dollars in the United

Last updated: 5/3/2023

Suppose the price of a Big Mac is 4 dollars in the United States U S and 596 forints in Hungary The actual exchang between the U S and Hungary is 227 forints for 1 U S dollar Using the theory of purchasing power parity find the implied exchange rate between the U S and Hungary 159 15 mcorrect This implies that the Hungarian forint is undervalued V when compared to the U S Dollar Hungarian fo