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For the law of one price to hold, all of the following are necessary EXCEPT A. transportation costs must be negligible. B. exchange rates must
For the law of one price to hold, all of the following are necessary EXCEPT
A.
transportation costs must be negligible.
B.
exchange rates must be fixed.
C.
traded goods must be homogeneous.
D.
all goods and services must be tradable.
E.
tariffs must not be levied by any country.
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