If American and Japanese consumers buy the same basket of goods ...

[jc611]

If American and Japanese consumers buy the same basket of goods in each country and there is no inflation in either country,
 
  A) the law of one price will hold.
  B) deviations from PPP will occur.
  C) PPP will hold.
  D) Both A and C.

Question 2

301-actions are more frequently used as a tool of trade policy, especially since the formation of the World Trade Organization.
 
  Indicate whether the statement is true or false

[adammoses97]

Answer to Question 1

D

Answer to Question 2

FALSE