The law of one price states that: The nominal exchange rates should always be the same as
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The law of one price states that:
The nominal exchange rates should always be the same as the real exchange rates, both in the short run and in the long run
In ideally efficient markets, the real purchasing power of a currency should be the same regardless of where it is spent
The cost of an individual good should be higher in countries with higher productivity
none of these
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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