Question

Larry, a United States citizen, is planning to take a European vacation. Most European nations use the euro as their currency. Just before his vacation, the value of the euro drops in international currency trading markets. How would this change in value affect Larry's upcoming trip?

Answer 1

Larry will spend less money traveling to Europe and will be able to buy more items in Europe with his money than he could have had if the value of the euro would not have dropped or if it would have increased.

Answer 2

The Answer is A. The cost of things Larry purchases while in Europe would decrease because it would take fewer dollars to buy euros than it would have before. Spend away Larry. Just make sure it fits in your luggage on the way home.

Step-by-step explanation: