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A country in Southeast Asia states its gross domestic product (GDP) in terms of yen. Assume that last year its GDP was 50 billion yen when one U.S. dollar could be exchanged for 120 yen.
a. Determine the country's GDP in terms of U.S. dollars for last year.
b. Assume the GDP increases to 55 billion yen for this year, while the dollar value of one yen is now $0.01. Determine the country's GDP in terms of U.S. dollars for this year.
c. Show how your answer in (b) would change if one U.S. dollar could be exchanged for 110 yen.
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