Shortly after it was introduced the euro traded just below


Shortly after it was introduced, the euro traded just below parity with the dollar, meaning that one dollar purchased more than one euro. This implies:-

a. that U.S. inflation was lower than European inflation

b. that U.S. interest rates were lower than European rates

c. that the law of one price does not hold d. none of the above.

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Financial Econometrics: Shortly after it was introduced the euro traded just below
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