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Expensive to americans now relative to three

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Suppose the spot exchange rate for the euro three years ago was $1.20/E while the spot exchange rate today is 1.21/e. Over the past three years, suppose that inflation in euroland has been 1% per year while inflation in the U.S. has been 1.5% per year. Given the numbers in this problem, do euroland goods seem cheaper or more expensive to americans now relative to three years ago? Explain why

Reference no: EM132554806

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