If American and Japanese consumers buy the same basket of goods in each country and there is no inflation in either country,
A)the law of one price will hold.
B)deviations from PPP will occur.
C)PPP will hold.
D)Both A and C.

Name: If American and Japanese consumers buy the same basket of goods in each country and there is no inflation in either country, A)the law of one price will hold. B)deviations from PPP will occur. C)PPP will hold. D)Both A and C.
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Question

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The Answer is D

If American and Japanese Consumers Buy the Same Basket of Goods