Question $2$

$1$ pts

Among the statements below pick the one which best defines the law of one price. Select one $-$ the most appropriate answer.

No correct answer.

It implies that the real value of a good in different countries must be the same.

It's underlying the purchasing power parity theory.

All answers are correct.

It says that the same amount of a given currency should be required to purchase the same good in two different countries given the exchange rate between their currencies.

Unlike the purchasing power theory itself it argues towards one specific good rather than the aggregate purchasing power.