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Results of exchange rate changes
Early in September 1983, it took 260 Japanese yen to equal $1. Nearly 28 years later, in August 2011, that exchange rate had fallen to 110 yen to $1. Assume that the price of a Japanese-manufactured automobile was $8,750 in September 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 28-year period because of changes in the exchange rate?
-Select-increased decreased Item 1
What would the dollar price of the automobile be in August 2011, again assuming that the car's price changes only with exchange rates? Round your answer to the nearest cent.
$
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