Suppose That the Dollar Buys More Bananas in Honduras Than

question 167

Multiple Choice

Suppose that the dollar buys more bananas in Honduras than in Guatemala. How could traders make a profit?

• A)by buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Honduras
• B)by buying bananas in Honduras and selling them in Guatemala, which would tend to raise the price of bananas in Guatemala
• C)by buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Guatemala
• D)by buying bananas in Guatemala and selling them in Honduras, which would tend to raise the price of bananas in Honduras

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