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Question
if the euro is trading at 1.2500 in u.s. dollars (this exchange rate is for illustration only), and you were spending your u.s. dollar in europe in part of the euro area, then to buy products priced in euros:
a. it would take a third again as much (1.33) in u.s. dollars
b. it would take one-quarter again as much (1.25) in u.s. dollars
c. it would take three-quarters again as much in u.s. dollars
d. none of the above
Answer
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