According to the Law of One Price, if two countries produce an identical good, assuming transportation costs and trade barriers are not an issue ________
A) the value of the currency in both countries should rise
B) the value of the currency in both countries should fall
C) the price of the good should be the same in the two countries
D) the value of the currency in one country will rise by the same amount that the value of the currency in the other country falls
C
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Since 1950,
A) the average length of expansions in the United States have become longer as compared to before 1950. B) the average length of expansions in the United States have become shorter as compared to before 1950. C) economic expansions in the United States have been so short that expansions barely exist. D) the average length of expansions in the United States are about the same length as compared to before 1950.
(pg 168) Charging prices closer to what consumers are willing to pay for a good
a. Reduces consumers surplus b. Increases producer surplus c. Both a and b d. None of the above