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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.
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