When the Big Mac in the euro costs more than it does in converted US dollars we can say the currency _____.
A)should not be measured in this way
B)is difficult to value, as currencies are volatile
C)is undervalued
D)is overvalued

Question

Quizplus · Accepted Answer

When the Big Mac in the euro costs more than it does in converted US dollars, it indicates that the euro is overvalued relative to the US dollar. This suggests that consumers in Europe will have to pay more for the same product compared to consumers in the US, which could impact trade and economic activity between the two countries.

When the Big Mac in the Euro Costs More Than