Question

Please help..

You buy certain supplies in Nearland. Last year, the currency exchange rate was 1 USD = 3 NRD. Are these supplies more or less expensive to buy now than last year? Explain your answer in complete sentences

Techtopia
(Techtopian dollar, or TPA) 1 USD = 1 TPA

Crosswater
(Crosswatering dollar, or CSW) 1 USD = 20 CSW

Nearland
(Nearlandian dollar, or NRD) 1 USD = 5 NRD

Answer 1

9514 1404 393

Answer:

less expensive

Explanation:

If we assume the supplies in Nearland have a constant price of 15 NRD, then the cost in USD last year was ...

(15 NRD)/(3 NRD/(1 USD)) = 5 USD

This year, the cost is ...

(15 NRD)/(5 NRD/(1 USD)) = 3 USD

The cost in terms of USD has gone down.

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Additional comments

Usually, exchange rates and local prices are related. If the supplies are produced in the US and sold in Nearland, the producer may want to maintain their pricing in terms of USD. That is, a supply that cost 1 USD last year would have been priced at 3 NRD last year. This year, the same supply, for the same 1 USD cost would be priced at 5 NRD. In Nearland, the supplies are more expensive than they were.

The real answer is, "it depends".