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Exchange Rate
The price of a single currency in terms of another currency.
Relative Purchasing Power Parity
A theory that suggests that changes in the exchange rates between currencies are in proportion to changes in the countries’ price levels.
Expected Inflation
Expected Inflation is the rate at which people anticipate prices in the economy will increase over a specific period, influencing savings and spending behavior.
Foreign Currency Approach
A methodological perspective in analyzing investments or economic situations involving exchange rate and currency risk considerations.
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