Multiple Choice
If an automobile costs $32,000 in New York and $1 = 0.8 euros, then under the condition of the law of one price, the cost of the automobile in Rome should be:
A) 32,000 euros.
B) 40,000 euros.
C) 35,000 euros.
D) 25,600 euros.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q37: When the relative price of a good
Q38: When the Japanese inflation rate is less
Q39: If conditions hold for the long-run monetary
Q40: Which of the following statements is NOT
Q41: Construct an example that demonstrates the law
Q43: In the international goods market, prices of
Q44: In which decade did the use of
Q45: If a pound of coffee beans costs
Q46: (Table: Exchange Rates and Prices) Suppose a
Q47: The data on exchange rate and price-level