The theory that,when measured in a common currency,the price of a product should be the same in two countries is referred to as the law of:
A) exchange rates.
B) large numbers.
C) spot rates.
D) one price.

Question

Quizplus · Accepted Answer

The theory is called the law of one price, which suggests that a product's price should be the same in two different locations when the price is measured in a common currency.

The Theory That,when Measured in a Common Currency,the Price of a Product