If a Dollar Buys More Corn in the U

question 7

Multiple Choice

If a dollar buys more corn in the U.S.than in Mexico,then

• A)the real exchange rate is greater than 1;a profit might be made by buying corn in the U.S.and selling it in Mexico.
• B)the real exchange rate is greater than 1;a profit might be made by buying corn in Mexico and selling it in the U.S.
• C)the real exchange rate is less than 1;a profit might be made by buying corn in the U.S.and selling it in Mexico.
• D)the real exchange rate is less than 1;a profit might be made by buying corn in Mexico and selling it in the U.S.