If a dollar buys more corn in the U.S. than in Mexico, then
a. the real exchange rate is greater than 1; a profit might be made by buying corn in the U.S. and selling it in Mexico.
b. the real exchange rate is greater than 1; a profit might be made by buying corn in Mexico and selling it in the U.S.
c. the real exchange rate is less than 1; a profit might be made by buying corn in the U.S. and selling it in Mexico.
d. the real exchange rate is less than 1; a profit might be made by buying corn in Mexico and selling it in the U.S.
c
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Income per capita is ________
A) gross domestic product divided by total labor force B) gross domestic product divided by total population C) gross domestic product divided by total amount of capital used D) gross domestic product divided by total unit of all goods produced
People who took out mortgages at the height of U.S. inflation in 1981:
A. paid much higher real interest rates than expected since inflation fell dramatically after 1981. B. paid much lower real interest rates than expected since inflation fell dramatically after 1981. C. paid much higher real interest rates than expected since inflation rose dramatically after 1981. D. paid much lower real interest rates than expected since inflation rose dramatically after 1981.