Multiple Choice
Suppose that the exchange rate is 9 Moroccan dirhams per U.S.dollar.Also suppose that you can buy a crate of oranges for 360 dirhams in the Moroccan capital of Rabat and can buy a similar crate of oranges in Miami for $35 dollars.
A) The real exchange rate is greater than one and arbitrageurs could profit by buying oranges in the United States and selling them in Morocco.
B) The real exchange rate is greater than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the United States.
C) The real exchange rate is less than one and arbitrageurs could profit by buying oranges in the United States and selling them in Morocco.
D) The real exchange rate is less than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the United States.
Correct Answer:
Verified
Correct Answer:
Verified
Q37: Colonial America had little industry and so
Q46: If the real exchange rate of the
Q58: In an open economy,gross domestic product equals
Q58: An appreciation of the U.S.real exchange rate
Q112: Which of the following,other components of spending
Q113: Other things the same,if the exchange rate
Q118: A firm in China sells jackets to
Q120: When Dee,a U.S.citizen,purchases a designer dress made
Q164: Perhaps the most dramatic change in the
Q174: You buy a new car built in