|Home Page EC 340, International Trade and Finance Files EC 340 Problem Sets Purchasing Power Parity||| Search|
1. State the law of one price. How does arbitrage ensure that the law prevails?
2. What is purchasing power parity? Why does PPP not appear to hold in the real world?
3. Discuss the Bretton Woods exchange rate system.
|David A. Latzko
Department of Business and Economics
Wilkes-Barre, PA 18766
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