If the Exchange Rate Is 8 Moroccan Dirhams Per U

question 13

Multiple Choice

If the exchange rate is 8 Moroccan dirhams per U.S.dollars,a crate of oranges costs 400 dirhams in the Moroccan capital of Rabat,and a similar crate of oranges in Miami sells for $55 dollars,then

• A)the real exchange rate is greater than one and arbitrageurs could profit by buying oranges in the U.S.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 U.S.
• C)the real exchange rate is less than one and arbitrageurs could profit by buying oranges in the U.S.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 U.S.

---

Definitions:

Syllogisms

A form of deductive reasoning where a conclusion is drawn from two given or assumed propositions (premises).

Telegraphic Speech

Speech in which words not critical to the message are left out.

Non-Critical Words

Words in a language that do not carry the core meaning of a sentence but are necessary for grammatical completeness.

Overextension

In language acquisition, overextension is children's use of words in a broader context than adults would, applying specific words to a wider variety of objects or situations.