Question: D Question 23 4 pts What impact do Exchange Rate changes have on the Balance of Trade? Calculate the following scenario and convert the purchase

D Question 23 4 pts What impact do Exchange Rate changes have on the Balance of Trade? Calculate the following scenario and convert the purchase price of a truck into dollars for both exchange rates to see the impact. Truck imported from Germany to the US Period 1 Period 2 Sales price in Euros (Does not change over periods) 600,000 Euro 600.000 Euro Dollar to Euro Exchange Rate $1 - 20 Euro $1 = 15 Euro Euro to Dollar Exchange Rate 1 Euro = 7$ 1 Euro-?$ With this information, you should be able to calculate the sales price of the truck in dollars for Periods 1 and 2. How much of a decrease/increase has the exchange rate fluctuation saved/cost us in dollars moving from Period 1 to 2? Cost $3,000 Saved $10,000 Cost $10,000 O Unable to determine since the exchange rate from Euros to Dollars is not provided

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