Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 25 - The Balance of Payments, Exchange Rates, and Trade Deficits - Discussion Questions: 11

Answer

The answer is below.

Work Step by Step

If the retailer waits until there is a better ratio for the USD and the Euro, they could get a higher exchange rate and thus make more. However, the risk of doing this is wasting money by waiting instead of using the money for other endeavors.
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