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The Economist invented the Big Mac Index which compares the cost of producing a...
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The Economist invented the Big Mac Index which compares the cost of producing a hamburger across different countries. The implied PPP exchange rate based on the Big Mac Index is Mexican Pesos 8.50 per dollar. However, the current exchange rate between the U.S and Mexico is given as Mexican Peso 10.80 per dollar. What does this suggest about the value of the Pesos according to the law of one price and PPP?
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