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Relative Purchasing Power Parity
An economic theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
Expected Inflation
The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers.
Exchange Rate
The rate at which one currency can be exchanged for another currency.
Canadian Dollar
The official currency of Canada, abbreviated as CAD.
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