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Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach in order to assess the relative value of the currencies.
Price Level
The price level is the average of current prices across the entire spectrum of goods and services produced in the economy, often used as a measure of inflation.
Exchange Rate
The monetary value of one currency when exchanged for another.
Gold Standard
An arrangement whereby the currencies of most countries are convertible into gold at a fixed rate.
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