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Assume you are going to take a trip to Paris. You buy Euros at your local...

Assume you are going to take a trip to Paris. You buy Euros at your local bank or the airport. Then you start spending them once you are in Paris. Every time you buy something there, you explicitly or implicitly translate the Euro price into dollar. You might say to yourself, "How can Parisians afford such high prices?" What is wrong with this line of reasoning? Explain. (Hint: Consider what currency do Parisians earn their money?

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