If Only One Good Is Traded Between Two Countries and the Price

question 25

Multiple Choice

If only one good is traded between two countries and the price of the good is the same in both countries when expressed in units of the same currency, then

• A)people have rational expectations.
• B)both countries have the same monetary policy.
• C)there is interest-rate parity.
• D)the law of one price holds.

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Definitions:

Sterile Technique

A set of procedures used to prevent contamination by microbes during surgeries, medical injections, and other processes that require a germ-free environment.

Eliminate Microorganisms

The process of removing or killing bacteria, viruses, and other microbes to prevent infection or contamination.

Hand Washing

The act of cleaning hands with soap and water or an alcohol-based hand rub to remove germs, dirt, and other potentially harmful substances.

Patient Care

The services rendered by health professionals to maintain or improve a patient's health, including medical, nursing, and allied health practices.