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Suppose That the Dollar Buys More Coffee in Honduras Than

Question 170

Multiple Choice

Suppose that the dollar buys more coffee in Honduras than in Guatemala. How could traders make a profit?


A) by buying coffee in Honduras and selling it in Guatemala, which would tend to raise the price of coffee in Honduras
B) by buying coffee in Honduras and selling it in Guatemala, which would tend to raise the price of coffee in Guatemala
C) by buying coffee in Guatemala and selling it in Honduras, which would tend to raise the price of coffee in Guatemala
D) by buying coffee in Guatemala and selling it in Honduras, which would tend to raise the price of coffee in Honduras

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