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.

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Definitions:

Primary Motives

Fundamental drives that are biologically driven, such as hunger, thirst, sleep, and avoidance of pain, which are essential for survival.

Unlearned

Not acquired by learning or instruction; often used to describe innate behaviors or reflexes that occur naturally without being taught.

Motive

An internal process that energizes, guides, and maintains behavior towards achieving a goal.

Stomach Contractions

The involuntary movements of the stomach muscles, often associated with the digestive process or sometimes with feelings of hunger.