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According to the Law of One Price,if Two Countries Produce

Question 4

Multiple Choice

According to the Law of One Price,if two countries produce an identical good,assuming transportation costs and trade barriers are not an issue ________.


A) the value of the currency in both countries should rise
B) the value of the currency in both countries should fall
C) the price of the good should be the same in the two countries
D) the value of the currency in one country will rise by the same amount that the value of the currency in the other country falls

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