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The Figure Given Below Depicts the Foreign Exchange Market for British

Question 127

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The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2    -Other things equal, the higher the deviations from purchasing power, the lesser will be the arbitrage opportunities.
-Other things equal, the higher the deviations from purchasing power, the lesser will be the arbitrage opportunities.

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