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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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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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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).