Business, 05.01.2022 05:10 salgadodarwin1
Data Extracted from the Economists on 31January 2018 shows that the
local price of Big Mac in Egypt is 34.21 EGP and the price of the Big
Mac in United States is $1.93, and if the exchange rate between the US
dollar and EGP (E EGP/$ = 17.70), answer the following: (Show the
steps of your answer)
a. Calculate the implied PPP between US dollar and EGP?
b. Calculate the degree of overvaluation/undervaluation of the EGP
against the US dollar?
c. Identify whether the EGP is overvalued or undervalued against the
US dollar
Answers: 2
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Data Extracted from the Economists on 31January 2018 shows that the
local price of Big Mac in Egyp...
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