Suppose the exchange rate of the Mexican peso to the U.S. dollar is 20 pesos/USD.
Furthermore, suppose a Big Mac in the U.S. is $4.50 and a Big Mac in Mexico is 75 pesos.
According to the theory of purchasing power parity, the exchange rate of the
Mexican peso to the U.S. dollar should be ________.
15.0 pesos/USD
16.7 pesos/USD
17.2 pesos/USD