Larry, a United States citizen, is planning to take a European vacation. Most European nations use the euro as their currency. Just before his vacation, the value of the euro drops in international currency trading markets. How would this change in value affect Larry's upcoming trip?

The cost of things Larry purchases while in Europe would decrease because it would take fewer dollars to buy euros than it would have before.

The cost of Larry's trip would go up because the cost of airfare will likely increase.

The cost of things Larry purchases while in Europe will increase because it would take more dollars to buy euros than it would have before.

Larry would likely be unaffected by changes to the value of the euro because he probably already purchased his plane ticket. I think the answer is A I'm not sure?

Yes, A.

The correct answer is:

The cost of things Larry purchases while in Europe will increase because it would take more dollars to buy euros than it would have before.

When the value of the euro drops in international currency trading markets, it means that the euro becomes weaker compared to the US dollar. As a result, it would take more US dollars to buy the same amount of euros. This would make things more expensive for Larry because he would need to spend more dollars to purchase goods and services in euros while in Europe.

The correct answer is:

C) The cost of things Larry purchases while in Europe will increase because it would take more dollars to buy euros than it would have before.

Explanation:
When the value of the euro drops in international currency trading markets, it means that the euro becomes weaker compared to the US dollar. This means that it will take more dollars to buy the same amount of euros. Therefore, if Larry has not yet exchanged his dollars for euros, he will need to spend more dollars to get the same amount of euros, resulting in a higher cost of things he purchases while in Europe.