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, a Big Mac costs 5 in New York City and costs 2 in London, ...

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If the dollar/pound exchange rate is 2/, a Big Mac costs 5 in New York City and costs 2 in London, ...

If the dollar/pound exchange rate is 2/, a Big Mac costs 5 in New York City and costs 2 in London, the pound is ________, and U.S. tourists will be ________.

A) overvalued; better off in London
B) overvalued; better off in New York
C) undervalued; better off in London
D) undervalued; better off in New York

Question 2 - Having MFN status means that the country is getting the most favorable trade terms possible with a trading partner.

Indicate whether the statement is true or false

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