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Question: Annette is going on a trip to France. The currency used in France is the euro. When Annette planned for the trip, the exchange rate was 1 United States dollar = 1.40 euros. On the day Annette exchanges her money, she discovers that the exchange rate is now 1 United States dollar = 0.80 euros. Describe what effect this change will have on Annette's ability to make purchases in France and explain why.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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