Multiple Choice
Assume that the exchange rate between the dollar and the euro is €1 = $1. Suppose the exchange rate changes to €1.25 = $1. What is the price in dollars of a €200 pair of Italian shoes before and after the exchange rate change?
A) $200 before; $160 after
B) $200 before; $250 after
C) $160 before; $125 after
D) $125 before; $160 after
Correct Answer:
Verified
Correct Answer:
Verified
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