The Theory That Nominal Exchange Rates Are Determined as Necessary

question 77

Multiple Choice

The theory that nominal exchange rates are determined as necessary for the law of one price to hold is called

• A) the fixed-exchange-rate rule.
• B) the equilibrium principle.
• C) the law of supply and demand.
• D) purchasing power parity.
• E) international equality.

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Administrative Expense

Costs related to the general administration of a business, such as salaries of executive officers and costs of general services.

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Selling and Administrative Expense

Overheads related to the selling of products and the management of an organization.

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