Multiple Choice
If the price of Yoo-hoo is $2 in New York and $1 in St. Petersburg, Russia (after converting the rubles to dollars) , you might expect:
A) people to buy Yoo-hoo in St. Petersburg and sell it in New York until the price was the same in each country.
B) people to buy Yoo-hoo in New York and sell it in St. Petersburg until the price was the same in each country.
C) people to buy Yoo-hoo in St. Petersburg and sell it in New York and the price difference would remain.
D) the price difference to exist forever.
E) None of these answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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