Assume you are going to take a trip to Paris. You buy euros at your local bank
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Assume you are going to take a trip to Paris. You buy euros at your local bank or at the airport. Then you start spending them once you are in Paris. Every time you buy something there, you explicitly or implicitly translate the euro price into dollars. Often, you might say to yourself, “How do Parisians afford such high prices?” What is wrong with this line of reasoning? In what currency do Parisians earn their income?
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Related Book For
The Economics of Public Issues
ISBN: 978-0134018973
19th edition
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
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