Qt: In which of the following situations will the law of one price hold true? A) Transportation costs are unequal. B) Exchange rates are exible and responsive. C) The products are not perfect substitutes. D) The product is a service that cannot be transported. Q2: A country's balance of payments account is a summary of: A) the country's participation in foreign exchange markets. B) the government budget balance, deficit, or surplus. C) government and private-sector saving and borrowing in loanable funds markets. D) the country's financial transactions with the rest of the world.03 When a central bank the supply of dollars on the foreign exchange market, the dollar will: A) decreases; appreciate. D) decreases; depreciate. C) oats; depreciate. D) oats; appreciate. Q4: When the dollar rises against the yen, the dollar has _, and the yen has: A) depreciated; depreciated. B) appreciated; depreciated. C) appreciated; appreciated. D) depreciated; appreciated