Suppose that a basket of goods costs $1,000 in the U.S. and the same basket of goods costs 200 zlotys in Poland. Explain what would happen to the dollar/zloty exchange rate if prices in the U.S. did not change but the price of the basket in Poland went to 500 zlotys.

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The Answer of Suppose that a basket of goods costs $1,000 in the U.S. and the same basket of goods costs 200 zlotys in Poland. Explain what would happen to the dollar/zloty exchange rate if prices in the U.S. did not change but the price of the basket in Poland went to 500 zlotys.

Suppose That a Basket of Goods Costs $1,000 in the U.S