If ________ didn't hold,the price of goods would change because merchants would buy cheap goods and avoid the expensive ones.
A) Purchasing power parity
B) Arbitrage
C) Exchange rates
D) Law of one price
Correct Answer:
Verified
Q46: 1 year ago $1 would buy 6.5
Q47: The theory that exchange rates must adjust
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Q50: The _ represents a best guess as
Q52: You can borrow $25,000 at 1% interest
Q53: The main conclusion drawn from the theory
Q54: You have equal amounts of money invested
Q55: PPP will not hold if the goods
Q56: It is more difficult to deal with
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