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Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory.
Capital Goods
Goods that are used in producing other goods, rather than being bought by consumers directly, such as machinery, tools, and buildings used in production.
Economic Growth
An increase in a nation's production of goods and services, measured by its gross domestic product (GDP) over time.
Consumer Goods
Items produced for personal consumption by individuals and households.
Productivity Of Land
Productivity of land refers to the amount and value of output (crops, minerals, etc.) produced per unit area, indicating the efficiency of land use in agricultural and industrial production.
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