Suppose europeans began purchasing real assets in the united states. how would this impact the foreign exchange market for the euro and the u. s. dollar price of the euro?
a. increase / increase
b. increase / decrease
c. decrease / increase
d. decrease / decrease
e. decrease/ not change

(B) Increase / Decrease

Explanation:

The supply of euro will increase and U.S. dollar price of euro will decrease

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"