With regard to exchange rate determination, the law of one price is a useful theory only when applied to:
A. long-run periods of time.
B. forward exchange rates.
C. futures contracts.
D. very short-run periods of time.
Answer: A
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Are the concepts of equity and efficiency different? Why or why not?
What will be an ideal response?
Deterring entry might require a firm to
A) price their product closer to the competitive price than to the monopoly price. B) price their product closer to the monopoly price than to the competitive price. C) drop output almost to zero to show the consumers "who's boss." D) drop price almost to zero to get price below marginal cost.
What do monopolistic competition, pure monopoly, and perfect competition have in common?
a. free entry b. long-run economic profits c. differentiated product d. price taking e. the rule of profit maximization
Social Security is an example of
a. a transfer payment b. a Federal Reserve mandate c. a block grant d. private insurance e. debt interest