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Measure the true equilibrium value of a currency

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Reference no: EM131292961

Since 1986, the Economist magazine each year publishes the Big Mac Index to measure the true equilibrium value of a currency based on one product, a Big Mac.

Please check the following video on the Big Mac Index.

https://youtu.be/_vCK6QZTVlc

Q: Do you think the law of one price applies better to gold or to Big Macs? Explain why?

Reference no: EM131292961

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