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If is the mean of a simple random sample taken from a large population and if the N population values are normally distributed, the sampling distribution of
is also normally distributed, regardless of sample size, n.
Equilibrium Exchange Rate
The exchange rate at which the demand for a currency is exactly equal to its supply in the foreign exchange market.
Purchasing Power Parity Theory
An economic theory that compares different countries' currencies through a "basket of goods" approach to determine relative currency values.
Exchange Rates
The value of one currency expressed in terms of another currency, used in international trade and investment.
Nominal Currency Values
The face value of currency without taking into account inflation or the purchasing power of the currency.
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