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In 1983 the Japanese yen-U.S. dollar exchange rate was 245 yen per dollar, and the dollar cost of a compact Japanese-manufactured car was $8,000. Suppose

In 1983 the Japanese yen-U.S. dollar exchange rate was 245 yen per dollar, and the dollar

cost of a compact Japanese-manufactured car was $8,000. Suppose that now the exchange

rate is 80 yen per dollar. Assume there has been no inflation in the yen cost of an

automobile so that all price changes are due to exchange rate changes. What would the

dollar price of the car be now, assuming the cars price changes only with exchange rates?

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