2014EconomicsMedium
If a Big Mac hamburger sells for the same dollar value in New York as in London then?
Athe exchange rates are said to be fixed pegged to each other
Bthe inflation rate in each country will necessarily equal 1 percent
Cpurchasing power parity holds
Dthe inflation rate in each country will necessarily equal zero
Correct answer
C. purchasing power parity holds
Explanation
The correct answer is purchasing power parity holds.