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All pictures are part of the same question. please help me with providing the co

ID: 2440283 • Letter: A

Question

All pictures are part of the same question. please help me with providing the correct answers and an explanation to each of your answers. thanks




The following questions focuses on the impact of changes in the exchange rate between U.S. dollars and euros. The euro is the currency used by a group of European countries that have adopted a single currency. The exchange rate is defined as euros per U.S. dollar. The price of American blue jeans is $100. At an exchange rate of $14.25 euros, the price of the American blue jeans to a European individual is: 8.1· euros Please enter a whole number, with no decimal point.

Explanation / Answer

8.1

125 Euros

1$=1.25 euros, therefore, $100 priced jeans is 125 euros ($100x1.25 euros).

8.2

150 euros

1$=1.50 euros, therefore, $100 priced jeans is 150 euros ($100x1.50 euros).

8.3

B. The U.S. dollar has appreciated since it can now buy 1.50 euros for every dollar from 1.25 euros. Euro has depreciated since U.S. dollar has become costlier.

8.4

A. U.S. exports will fall as the U.S. dollar has become costlier ( more euros are required to buy one U.S. dollar) and imports from Europe will become cheaper and will increase.