ECO - 252 -- Macroeconomics 8. If a McDonald's Big Mac cost $3.10 in the U. and 3.

ECO - 252 -- Macroeconomics

8. If a McDonald's Big Mac cost $3.10 in the U.S. and 3.30 euros in Spain, then what would the euro per dollar nominal exchange rate be if purchasing power parity (PPP) holds. Round up to the nearest cent. A cent is the euro equivalent of a penny.

If PPP does not hold and the actual nominal exchange rate if less than what you found above, does it cost more dollars or less dollars to buy a Big Mac in the U.S. than in Spain? *Show your work