Solved

That Identical Goods Should Cost the Same in All Nations

Question 156

Multiple Choice

That identical goods should cost the same in all nations, assuming it is costless to ship goods between nations and there are no barriers to trade, is a reflection of the


A) monetary approach to exchange-rate determination.
B) law of one price.
C) fundamentalist approach to exchange-rate determination.
D) exchange-rate-overshooting principle.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions