What is the law of one price? What will be an ideal ...

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What is the law of one price?
 
  What will be an ideal response?

Question 2

If an increase of 10 billion of investment results in an increase in equilibrium expenditure of 40 billion, the multiplier equals
 
  A) 10 billion  40 billion = 0.25.
  B) 40 billion - 10 billion = 30 billion.
  C) 10 billion  40 billion = 400 billion.
  D) 10 billion - 40 billion = -30 billion.
  E) 40 billion  10 billion = 4.

[cuttiesgirl16]

Answer to Question 1

The law of one price is the theory that goods which are easily tradeable across countries should sell at the same price when expressed in a common currency.

Answer to Question 2

E

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Excellent

[vickyvicksss]

TYSM