Suppose that trade barriers and transportation costs are nonexistent.If the exchange rate is 0.9 Swiss francs per dollar, then according to the law of one price, a refrigerator that costs $1,000 in the United States will cost
A) 1,900 francs in Switzerland.
B) 900 francs in Switzerland.
C) 1,300 francs in Switzerland.
D) 1,000 francs in Switzerland.
Correct Answer:
Verified
Q114: In the foreign exchange market, a decrease
Q115: Suppose that the exchange value of the
Q116: If American consumers increase their demand for
Q117: Which of the following does NOT explain
Q118: Suppose that the interest rate in Great
Q120: An increase in the British demand for
Q121: Exhibit 11.1
Assume the following: (1) the interest
Q122: Exhibit 11.1
Assume the following: (1) the interest
Q123: In a free market, the equilibrium exchange
Q124: Exhibit 11.1
Assume the following: (1) the interest
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents