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Consider a nation in which nominal exchange rates adjust completely to make up for differences in the purchasing power of the country relative to
Consider a nation in which nominal exchange rates adjust completely to make up for differences in the purchasing power of the country relative to its trading partner. In this case, the law of one price is unlikely to hold O arbitrage can be profitable O None of the listed options is true. O real exchange rates will be as far from 1 as possible
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
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