4/16/2023 0 Comments How much yen for a big macThe Big Mac index enables a comparison between many countries' currencies. The Big Mac was chosen because it is available to a common specification in many countries around the world, with local McDonald's franchisees having significant responsibility for negotiating input prices. In the case of the Big Mac index, the basket is the McDonald's Big Mac which is sold in about 120 countries. The purchasing power parity theory is based on the principle that a dollar should buy the same amount in all countries. Under PPP, exchange rates between two countries should adjust to equalize the prices of an identical basket of goods and services across countries. The index is based on the theory of purchasing power parity (PPP).
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