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Consider an Apple iPod that costs $240. a. If the euro-dollar exchange rate is 1.2 euros per dollar, so that it costs a European 1.2
Consider an Apple iPod that costs $240. a. If the euro-dollar exchange rate is 1.2 euros per dollar, so that it costs a European 1.2 euros to buy a dollar, how much will the iPod cost in France? Instructions: Enter your response as an integer value. Price of iPod in France: euros. b. If the euro-dollar exchange rate falls to 0.6 euros per dollar, how much will the iPod cost in France? Instructions: Enter your response as an integer value. Price of iPod in France: euros. c. Consequently, what will happen to French purchases of iPods and the amount of dollars demanded in the foreign exchange market as the euro-dollar exchange rate falls? French purchases of iPods will (Click to select) . The amount of dollars demanded in the foreign exchange market will (Click to select)
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