The Big Mac, perhaps the world's most popular sandwich, was created in the1968 by a McDonald's franchisee in Pittsburgh, Pennsylvania. Economists also see the sandwich as a consumer good that is sold at over 25,000 McDonald's restaurants in 116 countries around the world. Because of its popularity, the Big Mac allows economists to make comparisons of exchange rates and relative prices in countries around the globe. This table looks at how the Big Mac Index helps explain variation in exchange rates and prices.
1. Calculate the most undervalued currency as per the Big Mac Index?
2. Calculate the most overvalued currency as per the Big Mac Index?