On December 29, a skiing trip to Norway cost 7,000 krone. Two weeks later, the U.S. dollar devalued against the Norwegian krone. If the price of the trip in Norway remains the same, a skier living in Florida will now view this trip as

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Since the U.S. dollar devalued against the Norwegian krone, it means that 1 U.S. dollar can buy fewer Norwegian krone than before. Therefore, the cost of the skiing trip, which is denominated in Norwegian krone, would increase from the perspective of someone living in the U.S. Therefore, the skier living in Florida would view the trip as more expensive.

On December 29, a Skiing Trip to Norway Cost 7,000