2. Let us assume that you booked a hotel room in Barcelona for $300 per night. When you check out, you are charged only $285 per night. Assuming that the price of the room in euros had not changed, and that the nominal exchange rate had been 0.8 (euros/$) when the reservation was made, the new nominal exchange rate is..?
2. Let us assume that you booked a hotel room in Barcelona for $300 per night. When you check out, you are charged only $285 per night. Assuming that the price of the room in euros had not changed, and that the nominal exchange rate had been 0.8 (euros/$) when the reservation was made, the new nominal exchange rate is..?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
M2
![2. Let us assume that you booked a hotel room in
Barcelona for $300 per night. When you check out,
you are charged only $285 per night. Assuming
that the price of the room in euros had not
changed, and that the nominal exchange rate had
been 0.8 (euros/$) when the reservation was
made, the new nominal exchange rate is ..?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36595e4f-8dae-43cf-8e67-6fbb74f1a3bb%2F6779964f-4d16-4cf0-a1f7-badb30413dca%2F9blnti_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Let us assume that you booked a hotel room in
Barcelona for $300 per night. When you check out,
you are charged only $285 per night. Assuming
that the price of the room in euros had not
changed, and that the nominal exchange rate had
been 0.8 (euros/$) when the reservation was
made, the new nominal exchange rate is ..?
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