Questions and answers week 7.docx - Questions week 7 Q1...

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Questions week 7 Q1Define the law of one pricecarefully,noting its fundamental assumptions. Why are theseassumptions so difficult to find in the real world in order to apply thetheory? . Q2What is the exchange ratepass-through? What is partial exchange ratepass-through,and howcan it occur in efficient globalmarkets?

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