A

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Q. That identical godos should cost the same in all nations, assuming tis costless to ship godos between nations and there are no barriers to trade, is a reflection of the:

  • (A) Monetary approach to exchange-rate determination
  • (B) Law of one price
  • (C) Fundamentalist approach to exchange-ratedetermination
  • (D) Exchange-rate-overshooting principle
  • Correct Answer - Option(B)
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  • Filed under category Economic
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