Question
Suppose Japanese and Austrian consumers buy the same basket of goods in each country and there is no inflation in either country. In such a
Suppose Japanese and Austrian consumers buy the same basket of goods in each country and there is no inflation in either country. In such a case
a.the law of one price will hold.
b.PPP will hold.
c.deviations from PPP will occur.
d.Both (1) and (2).
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
