View the step-by-step solution to:


This question was created from HW4EC333.s19.doc


S. The textbook presents a “Big Mac Index" showing the cost of a
Big Mac in different countries. Create your own index of the cost of the coat of a good or service in the U.S. and two other countries using the internet to find prices. Examples of a
service is the cost of hotel room using or the cost of a rental car, using In each case, find the local price
expressed in the local currency, and convert into dollars using the exchange rate. Then calculate the real exchange rate as the foreign price expressed in dollars divided by the U.S. price.
Exchange rates can. be found. on usforex.con1 but they are also available on many other sites. When comparing' prices across
countries, try to keep the good or service as similar as possible; for example compare the a room with two double beds at the same hotel chain. Report the good or service you are using,
the local price, the exchange rate, the price in U.S. dollars,
and the real exchange rate. Your answer should. be in the following format: Country Local Price Exchange Rate Dollar Price Real Ex.Rate

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes