Multiple Choice
A pair of running shoes costs $70 in the U.S.If the price of the same shoes is 4500 rupees in India and the exchange rate is 60 rupees per dollar,than the real exchange rate is
A) more than 1,so a profit could be made by buying these shoes in the U.S.and selling them in India.
B) more than 1,so a profit could be made by buying these shoes in India and selling them in the U.S.
C) less than 1,so a profit could be made by buying these shoes in the U.S.and selling them in India.
D) less than 1,so a profit could be made by buying these shoes in India and selling them in the U.S.
Correct Answer:
Verified
Correct Answer:
Verified
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