If a dollar buys more rice in the China. than in the U.S., then
a. the real exchange rate is greater than 1; a profit might be made by buying rice in the U.S. and selling it in China.
b. the real exchange rate is greater than 1; a profit might be made by buying rice in China. and selling it in the U.S.
c. the real exchange rate is less than 1; a profit might be made by buying rice in the U.S. and selling it in China.
d. the real exchange rate is less than 1; a profit might be made by buying rice in China and selling it in the U.S.
b
You might also like to view...
A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor
Pleasure boaters enjoy the use of waterways, but sometimes run into problems and need rescue. Coast Guard boats, supported by tax revenue, are often used for rescue. Is it likely that there will be an efficient amount of boating and rescuing?