Between 1988 and 1991, the price of a room at the Milan Hilton rose from Lit 346,400 to Lit 475,000. At the same time, the exchange rate went from Lit 1,302:$1 in 1988 to Lit 1,075:$1 in 1991.
Show calculation and explain.
a. By how much has the dollar cost of a room at the Milan Hilton changed over this three-year period?
b. What has happened to the lira’s dollar value during this period?