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
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An increase in a country's capital stock relative to its work force is known as
A) capital improvement. B) capital augmentation. C) capital growth. D) capital deepening.
The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
Equilibrium price is
A. $5.
B. $4.
C. $3.
D. $2.
Which of the following is most likely to increase the potential output of an economy?
What will be an ideal response?