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A German sports car is selling for €65,000. What is thedollar price in the United States for the German car ifthe exchange rate is 0.80 euro per dollar?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 16RQ: Does a higher rate of return in a nations economy, all other things being equal, affect the exchange...

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A German sports car is selling for €65,000. What is the
dollar price in the United States for the German car if
the exchange rate is 0.80 euro per dollar?

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