1. If purchasingpower parity applied to Big Macs and a Big Mac cost $2.50 in the

1. If purchasingpower parity applied to Big Macs and a Big Mac cost $2.50 in theUnited States while the British pound cost $1.50 and 0.90 euroscould be obtained for $1.00 (a) how much would the Big Mac cost inBritain and (b) Germany respectively? Exam Questions