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The Reason That the Law of One Price Might Fail

question 73

True/False

The reason that the law of one price might fail in the short run is that prices are sticky and the nominal exchange rate is a financial price and adjusts rapidly to new information.


Definitions:

Traditionality

The quality of adhering to traditions or long-established customs and practices.

Occupational Influence

The impact that one's occupation or career choice has on their lifestyle, personal identity, and social relationships.

Feminine

Qualities or attributes regarded as characteristic of women and girls, often socially constructed and varying widely among cultures and individuals.

Masculine

Qualities, attributes, or roles traditionally associated with men and boys, often related to strength, assertiveness, and leadership.

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