If the Exchange Rate Is 60 Indian Rupees Per Dollar

Multiple Choice

If the exchange rate is 60 Indian rupees per dollar and a bushel of rice costs 200 rupees in India and $3 in the U.S. ,then the real exchange rate is

A) greater than one and arbitrageurs could profit by buying rice in the U.S.and selling it in India.
B) greater than one and arbitrageurs could profit by buying rice in India and selling it in the U.S..
C) less than one and arbitrageurs could profit by buying rice in the U.S.and selling it in India.
D) less than one and arbitrageurs could profit by buying rice in India and selling it in the U.S..