The law of one price:
A. can explain short-run exchange rates but not long-run exchange rates.
B. is based on arbitrage.
C. applies only to real goods and not financial assets.
D. is a mathematical concept that is not useful in explaining exchange rates.
Answer: B
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Productive efficiency requires production at a quantity such that:
a. MC = MR b. MC = ATC c. MC = D d. ATC = D
Suppose the population (age 16 and over) of Angola is 100 million; 5 million are unemployed, and 70 million hold jobs. The labor force participation rate in Angola is
a. 5 percent. b. 65 percent. c. 70 percent. d. 75 percent.
Which of the following is considered a "third party" within the medical services industry?
A) the patient B) the private insurance company C) the for-profit hospital D) the medical provider, i.e., physician
At small levels of output the gap between the ATC and the AVC curves is _______, and at larger levels of output the gap between the ATC and the AVC curves is _______.
Fill in the blank(s) with the appropriate word(s).