Value of the dollar relative to euro-pound and yen

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Browse the Internet and find the latest Big Mac Index data. What does the data show in terms of the value of the dollar relative to the euro, pound, and yen? Are these currencies over- or undervalued relative to the dollar?

Some observers believe that large U.S. government deficits will lead to higher inflation in the future. If this did happen, how could the PPP theory be used to forecast the impact of this higher inflation on the value of the dollar?

Reference no: EM132277413

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