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Real Exchange Rate
An adjusted exchange rate between two currencies that reflects the purchasing power of the two currencies; it factors in the relative prices of a standard set of goods and services in each country.
U.S. Dollar
The official currency of the United States, widely used as a benchmark in international financial transactions.
Domestic Investment
Refers to the total capital investment in an economy by its residents and businesses, excluding investments in foreign assets.
Net Capital Outflow
The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in an economy.
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