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What is the real exchange rate between the us and japan

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Reference no: EM133574164

Question: The Mexican Peso to USD exchange rate is 20.5 pesos per USD, and the yen to USD exchange rate is 112 yen per USD.

a. How many pesos can you buy with one dollar?

b. What is the pesos per yen exchange rate?

c. The price of a Big-Mac is ¥390 in Japan and $5.04 in the US. If purchasing power parity was satisfied, and the price of a burger in Japan were held constant, what would the price of a burger in the US be?

d. What is the real exchange rate between the US and Japan?

 

 

Reference no: EM133574164

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