Multiple Choice
Suppose that trade barriers and transportation costs are nonexistent.If the exchange rate is 0.9 Swiss francs per dollar, then according to the law of one price, a refrigerator that costs $1,000 in the United States will cost
A) 1,900 francs in Switzerland.
B) 900 francs in Switzerland.
C) 1,300 francs in Switzerland.
D) 1,000 francs in Switzerland.
Correct Answer:
Verified
Correct Answer:
Verified
Q49: Figure 12.3 Market for British Pounds<br> <img
Q50: The U.S.demand for pesos would shift to
Q51: Suppose the exchange rate between the U.S.dollar
Q52: Figure 12.3 Market for British Pounds<br> <img
Q53: According to the asset-markets approach, adjustments among
Q55: If the U.S.inflation rate rises to the
Q56: In the long run, exchange rates are
Q57: Which of the following is likely to
Q58: Given floating exchange rates, assume that the
Q59: The Canadian dollar would depreciate on the