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Author Question: For the law of one price to hold, all of the following are necessary EXCEPT (Read 34 times)

rlane42

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Question 1

Each of the following is a factor that affects exchange rates EXCEPT
◦ domestic economy.
◦ supply and demand of currency.
◦ relative price of goods.
◦ returns on international investments in securities.

Question 2

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


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Marked as best answer by rlane42 on Apr 25, 2021

lkoler

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rlane42

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Reply 2 on: Apr 25, 2021
Wow, this really help


cam1229

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Reply 3 on: Yesterday
Gracias!

 

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