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  2. Topic
    Business
  3. Study Set
    Applied International Economics
  4. Exam
    Exam 14: Exchange Rates and Their Determination: A Basic Model
  5. Question
    If the Yen Price of Rice Is 400 Yen and the Dollar
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If the Yen Price of Rice Is 400 Yen and the Dollar

Question 2

Question 2

True/False

If the yen price of rice is 400 yen and the dollar price of rice is $5, then the law of one price states that the yen/dollar exchange rate should be 0.125.

Correct Answer:

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