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In what circumstances would lenders most benefit?
Nominal Exchange Rate
The rate at which one currency can be exchanged for another currency, without adjustment for inflation.
Purchasing-Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of each currency.
Inflation Rate
An upward shift in the overall price levels of goods and services within an economy throughout a specified period.
Real Exchange Rate
The rate at which one country's currency can be exchanged for another's, adjusted for inflation, reflecting the buying power between the two currencies.
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