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An unexpected increase in inventories has:
Transaction Costs
Transaction costs are expenses incurred when buying or selling a good or service, which include fees, taxes, and other charges associated with the transaction.
Absolute Purchasing Power Parity
A theory that suggests that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
Forward Exchange Rates
Exchange rates determined today for currencies to be exchanged at a future date, used in hedging and speculation.
Spot Rates
The current market price of a financial instrument, commodity, or currency for immediate delivery and payment.
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