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RESULTS OF EXCHANGE RATE CHANGES Early in June 1983, it took 230 Japanese yen to equal...

RESULTS OF EXCHANGE RATE CHANGES Early in June 1983, it took 230 Japanese yen to equal $1. In June 2015, that exchange rate had fallen to 97 yen to $1. Assume that the price of a Japanese-manufactured automobile was $10,000 in June 1983 and that its price changes were in direct relation to exchange rates. Has the price, in dollars, of the automobile increased or decreased during the 32-year period because of changes in the exchange rate? What would the dollar price of the automobile be in June 2015, again assuming that the car's price changes only with exchange rates? Round your answer to the nearest cent. Do not round intermediate calculations. $

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Answer #1

Price has increased

Price in 2015=Price in dollars in 1983*exchange rate in 1983/exchange rate in 2015=10000*230/97=23711.34021 $

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