Examlex
An increase in which of the following would shift IS to the right and AD to the left?
Forward Exchange Rate
The predetermined rate at which two currencies will be exchanged at a future date.
International Fisher Effect
The International Fisher Effect is a theory that suggests differences in nominal interest rates in different countries are directly proportional to changes in the exchange rate between their currencies.
Spot Exchange Rate
The current exchange rate at which one currency can be immediately exchanged for another currency.
Purchasing Power
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.
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