An Exception to the Law of One Price Occurs If

question 36

Multiple Choice

An exception to the law of one price occurs if

• A)the good is not tradeable.
• B)demand for the good is stronger in some countries than in others.
• C)exchange rates are flexible, rather than fixed.
• D)interest rates differ across countries.

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Definitions:

Insulin

A hormone produced by the pancreas that allows your body to use sugar (glucose) from carbohydrates in the food for energy or to store glucose for future use.

Type 1 Diabetes

An autoimmune condition in which the pancreas produces little to no insulin, resulting in high blood sugar levels, and necessitates lifelong insulin use.

Hypoglycemia

A condition characterized by abnormally low levels of glucose (sugar) in the blood.

Gestational

Pertaining to pregnancy or the period of gestation where changes can occur affecting the health of both the mother and the unborn baby.