In Munich, a bratwurst costs 5 euros; a hot dog cots $4 at Boston’s Fenway Park. At an exchange rate of $1.05/euro, what is the price of a bratwurst in terms of a hot dog? All else equal, how does this relative price change if the dollar deprecates to $1.25/euro? Compared with the initial situation, has a hot dog become more or less expensive relative to a bratwurst?