If a kilogram of coal costs €1.5 in Germany and $1 in the United States, the law of one price ________.
A) calculates the expected exchange rate between the euro and the dollar to be €1.5/$
B) calculates the expected exchange rate between the euro and the dollar to be €.67/$
C) tells us the expected exchange rate between the euro and dollar is equal to the actual rate
D) tells us there is an arbitrage opportunity
Correct Answer:
Verified
Q67: Which of the following lowers the price
Q68: The law of one price _.
A) works
Q69: An exchange rate tells us _.
A) about
Q70: Which of these is the relative ability
Q71: _ is an example of monetary policy.
A)
Q73: When a government lowers taxes it is
Q74: _ involves using taxes and government spending
Q75: When a government buys its own securities
Q76: A nation's government intentionally raising its currency's
Q77: Managers prefer that exchange rates be _.
A)
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