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:

Liver Metabolism

The process by which the liver alters chemicals, drugs, and nutrients to be used or excreted by the body.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to a few seconds.

Retain Information

The capacity to remember or hold onto information over time.

Ended

Having come to a conclusion or termination; the final point of something.