36) The Law of One Price is more likely to apply to money ice is more likely to apply to money than to commodities. A) TRUE B) FALSE 37) The Fisher Effect holds that nominal interest rates vary inversely with expected inflation. A) TRUE B) FALSE 38) PPPT applies equally to services and commodities. A) TRUE B) FALSE. 39) Today the spot rate is $1.15 per euro and a U.S. investor buys one million dollars of a European mutual fund at a price of 20 per share. One year late the shares have appreciated to 24. What rate of return would he have earne in U.S. dollars if the spot rate at that point is $1 per euro? A) 20% 32 B) 15% load C) 12% Show di lobi D) 10% E) 4.35% 40) If interest rates in Canada are much higher than in the U.S., a co interest arbitrage consisting of borrowing in the U.S. and lending in C will yield a pure profit. A) TRUE B) FALSE