Suppose that the dollar buys more bananas in Honduras than in Costa Rica.How could traders make a profit?
A) by buying bananas in Honduras and selling them in Costa Rica,which would tend to raise the price of bananas in Honduras
B) by buying bananas in Honduras and selling them in Costa Rica,which would tend to raise the price of bananas in Costa Rica
C) by buying bananas in Costa Rica and selling them in Honduras,which would tend to raise the price of bananas in Costa Rica
D) by buying bananas in Costa Rica and selling them in Honduras,which would tend to raise the price of bananas in Honduras

Question

Quizplus · Accepted Answer

Traders could buy bananas where they are cheaper (Honduras) and sell them where they are more expensive (Costa Rica), which would increase demand and prices in Honduras.

Suppose That the Dollar Buys More Bananas in Honduras Than