Arbitrage in the foreign exchange market, international loans markets, and goods markets results in
A) purchasing power parity, interest rate parity and law of one price.
B) purchasing power parity, interest rate parity and price parity.
C) purchasing power parity, interest rate parity and round-trip profit.
D) purchasing power parity, price parity and no round-trip profit.
Question 2
If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?
A) 97.3
B) 102.8
C) 128.0
D) zero because the price of Blu-rays fell and the price of water increased
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The "Yes - Markets Self-Adjust" and "No - Markets Fail Often" camps agree