7. “Traveling in Italy is much cheaper now than it was ten years ago,’’ says a friend.“Ten years ago, a dollar bought 1,000 lire; this year, a dollar buys 1,500 lire.’’

Is your friend right or wrong? Given that total inflation over this period was 25 percent in the United States and 100 percent in Italy, has it become more or less expensive to travel in Italy?

Write your answer using a concrete example—

such as a cup of American coffee versus a cup of Italian espresso—that will convince your friend.