a. true Jason intends to use arbitrage. There is the potential for arbitrage by purchasing foreign items to sell in the United States if the real exchange rate for the United States is larger than 1.
Arbitrage is the simultaneous purchase and sale of the same asset in multiple marketplaces is known as arbitrage. The goal is to make money off of minute variations in the asset's quoted price. It takes advantage of brief changes in the value of the same or comparable financial instruments on various markets or in various forms.A movement to the left along a specific aggregate-demand curve represents the impact of an increase in price level on the aggregate-demand curve. The demand for products and services decreases when prices rise because customers perceive themselves as being less wealthy.
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