Author Question: What is the law of one price? What will be an ideal response?[br][br][b][color=#347235]Question ... (Read 114 times)

stock · **on:** Jun 29, 2018

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 · **Reply #1 on:** Jun 29, 2018

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