Discuss consumer is relying on what concept, Other Subject

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Discuss consumer is relying on what concept

Problem: If a Starbucks latte costs $3.50 in the U.S. and a consumer expects to buy a Starbucks latte in China for the same price according to the exchange rate, that consumer is relying on what concept?

Big Mac Index
Inflation
Law of One Price
Dollarization

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