Suppose that the exchange rate is 9 Moroccan dirhams per U.S.dollar.Also suppose that you can buy a crate of oranges for 360 dirhams in the Moroccan capital of Rabat and can buy a similar crate of oranges in Miami for $35 dollars.
A) The real exchange rate is greater than one and arbitrageurs could profit by buying oranges in the United States 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 United States.
C) The real exchange rate is less than one and arbitrageurs could profit by buying oranges in the United States 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 United States.
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