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1. Suppose that you are considering going on vacation abroad and that the euro has appreciated by 15% with respect to the Canadian dollar. Would

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1. Suppose that you are considering going on vacation abroad and that the euro has appreciated by 15% with respect to the Canadian dollar. Would you be more or less willing to visit Rome and Paris? 2. If the Japanese price level rises by 5% relative to the price level in Canada, what does the theory of purchasing power parity predict will happen to the value of the Japanese yen in terms of dollars

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