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In: Economics

Search online and find the most recent Big Mac Index and make a list of 10...

Search online and find the most recent Big Mac Index and make a list of 10 countries including US. Which currencies are over valued and which under valued (if any)? Provide a possible explanation of why a selected currency is over valued.

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Expert Solution

The extent of over-valuation or under-valuation is also shown in the given countries.

The selected country (Norway) is considered overvalued because as per the prevailing exchange rate, Norway currency is 8.88 / US $, but as per Big Mac Index, the Norway currency is 9.4 / US $, that is overvalued by 5.32%

Rahul Sunny answered 1 year ago
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