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If the correlation coefficient (r) = 1.00,then
Dollar Depreciates
A decrease in the value of the U.S. dollar relative to other currencies in the foreign exchange market, making foreign goods more expensive and U.S. exports cheaper.
Gold Standard
A monetary system in which the value of a currency is directly linked to a specified amount of gold, allowing currency to be exchanged for gold at the fixed rate.
Trade Deficit
An economic condition where a country's imports exceed its exports over a certain period, leading to negative net exports.
Exchange Rate
The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another currency.
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