If a dinar buys more potatoes in Saudi Arabiathan in France,then
A) the real exchange rate is greater than 1; a profit might be made by buying potatoes in Saudi Arabia and selling them in France.
B) the real exchange rate is greater than 1; a profit might be made by buying potatoes in France.and selling them in Saudi Arabia.
C) the real exchange rate is less than 1; a profit might be made by buying potatoes in Saudi Arabia and selling them in France.
D) the real exchange rate is less than 1; a profit might be made by buying potatoes in France and selling them in Saudi Arabia.
Correct Answer:
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