While vacationing in Italy, you see an interesting meal on a menu. The price is 24 euros. A. If the exchange rate is .80 euros per dollar, how many dollars would you have to give up to buy the meal? B. If the dollar appreciated against the euro, but the price of the meal remained 24 euro, would the meal cost more or fewer dollars? Explain
A. 24 euros = $x times .80 euro per dollar, x = 24/.80 = 30
B. It would cost fewer dollars. If the dollar appreciated against the euro, each dollar would buy more euros.
Economics
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