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D Question 7 2 pts You are interested in taking a trip to South Korea soon and are wondering where your dollar can buy more
D Question 7 2 pts You are interested in taking a trip to South Korea soon and are wondering where your dollar can buy more -- in the USA or South Korea. After calculating the real exchange rate as we have in class materials, using a market basket of goods and services, you get a result of 1.2. This tells you that your money will get you [ Select ] goods and services in South Korea than it will in the USA; in other words, your dollar "goes further" in [ Select ] D Question 8 2 pts 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, real exchange rates will be as far from 1 as possible the law of one price is unlikely to hold O arbitrage can be profitable None of the listed options is true
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