Elaborate on the correlations between inflation and index prices, and the correlations between personal incomes and prices.

“Forecasting Exchange Rates and Risks Associated with Transaction and Translation Exposure” Please respond to the following:

From the first e-Activity, determine whether or not the Big Mac Index supports the theory of PPP. Analyze the essential manner in which the IFE is reflected in the different prices on The Big Mac Index from country to country. Elaborate on the correlations between inflation and index prices, and the correlations between personal incomes and prices.