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Commerce · Q667

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Graduate and Post Graduate · Commerce · question 667

Q667

The starting point for understanding how exchange rates are determined is a simple idea called . . . . . . . ., which states-if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country produces it.

A.
Gresham's law
B.
The law of one price
Answer
C.
Purchasing power parity
D.
Arbitrage

Answer: Option B

Solution

Answer: Option B
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