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On March 1, You Make Plans to Travel to Japan

Question 126

Multiple Choice

On March 1, you make plans to travel to Japan the following summer. The spot exchange rate for the yen is $.02. Since it will be a short trip, you believe $10,000 in spending money will be sufficient. On July 1, the spot exchange rate for the yen is $.01. As a result, your $10,000 will buy:


A) Twice as many yen as you had planned.
B) Half as many yen as you had planned.
C) 20% fewer yen than you had planned.
D) 20% more yen than you had planned.
E) Exactly as many yen as before, since you planned ahead.

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