Notes on the Money Market and LM Curve – Eco 3202 – Fall ...
Suppose the value of the US $ is one US dollar equals 0.80 euros. So an import from Europe that is priced at 80 euros would cost $100 US dollars. Now suppose the US dollar strengthens so that one US dollar equals one euro. What would happen to the price, in US dollars, of the item that cost 80 euros? Answer: The price would fall to 80 US dollars. ................
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