Which of the following is also known as the "law of one price"?
A) Common denominator
B) dirty float
C) Purchasing power parity
D) Flexible exchange rate policy

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) is known as the "law of one price" because it suggests that in the absence of transaction costs and other barriers, identical goods should have the same price when expressed in a common currency.

Which of the Following Is Also Known as the "Law