After the unification of the East and West German economies in 1990, the East German mark (EDM) was replaced by the West German mark (DM)

After the unification of the East and West German economies in 1990, the East German mark (EDM) was replaced by the West German mark (DM). A contested issue in the debates over the terms of unification was the rate at which the EDM and DM were to be exchanged for each other. Some argued that DM 1 must be set equal to EDM 2, while others favored a one-to-one relationship. In the end, the government of Germany decided to apply the DM 1=EDM 1 exchange rate for the first 3000 Eastern marks that each former East German citizen wanted to convert and maintain an exchange rate of DM 1=EDM 2 for any additional amounts of EDM offered for exchange. Suppose the German government had decided to apply the 1:1 rate to all East German marks.

Assuming that all other policies as well as production levels would have remained the same, compared to what actually happened to the dollar-DM exchange rate, the dollar value of the DM __________.