iPods are less expensive in Canada than the United States, once the exchange rate is taken into account. This is an indication that
A) the nominal exchange rate is equal to one.
B) purchasing power parity does not hold.
C) the law of one price holds.
D) the exchange rate is fixed.
B
Economics
You might also like to view...
For a product with a rapidly increasing opportunity cost of producing additional units,
A) demand is price elastic. B) supply is price elastic. C) demand is price inelastic. D) supply is price inelastic. E) the demand curve is vertical.
Economics
Monetary costs and opportunity costs are always identical
a. True b. False Indicate whether the statement is true or false
Economics