Exchange rate between the dollar and the yen

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Reference no: EM131640654

Assume that the exchange rate between the U.S. dollar and the Japanese yen is $1 = 120 yen. A pen that retails for $10 in New York should sell for 1,200 yen in Tokyo, if there are no trade barriers and transportation costs, according to the:

law of one price.

theory of demand.

bandwagon effect.

inefficient market theory.

international Fisher effect.

Reference no: EM131640654

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