_______ suggests that arbitrage activities will continue until the price of the good is identical in both markets.
A. Purchasing power parity
B. The law of one price
C. Equilibrium pricing
D. Two-point arbitrage
Answer: B
_______ suggests that arbitrage activities will continue until the price of the good is identical in both markets.
A. Purchasing power parity
B. The law of one price
C. Equilibrium pricing
D. Two-point arbitrage