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Calculating the Impact of Exchange Rate Fluctuations
A company in a home country needs to import a machine that costs 100,000 units of a foreign currency. Initially, the exchange rate, defined as units of home currency per unit of foreign currency, is 1.50. A week later, the exchange rate changes to 1.60. Calculate the new cost of the machine in the home currency and state whether the home currency has appreciated or depreciated, justifying your answer.
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Economics
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