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When There Are No Trade Costs, Which of the Following

question 23

Multiple Choice

When there are no trade costs, which of the following conditions exist? I. There is no arbitrage.
II) The law of one price (LOOP) is operational.
III) The real exchange rate is equal to one.


Definitions:

Anaphylaxis

A severe, potentially life-threatening allergic reaction that can occur rapidly.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, it plays a key role in the fight-or-flight response by increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Anti-inflammatory

Relating to the reduction of inflammation or swelling, often referring to drugs or natural remedies that reduce pain and inflammation in the body.

Immunity

The ability of an organism to resist harmful microorganisms from entering it, either through innate or adaptive mechanisms.

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