Question

If the exchange rate for Euro’s changes from $1 = .9 Euros to $1 = .6 Euros, who would be helped the most?

A. Americans going to Europe to vacation
B. Europeans going to Las Vegas to gamble
C. Japanese Businessmen going to Europe for Business
D. None of the Above

Answer 1

If the exchange rate for Euro’s changes from $1 = .9 Euros to $1 = .6 the most helped with this would be

B. Europeans going to Las Vegas to gamble

Step-by-step explanation:

If the quantity of euros a European has to pay for acquiring 1 dollar drops from 0.9 to 0.6 then the Europeans will have to pay less and the price of dollar compared to Euros will be cheaper.

In this scenario the Europeans going to Las Vegas to gamble will have to put 0.3 euros less to bet the same quantity of dollars, that they would have bet a a dollar price of 0.9 euros.